Rachel Reeves pulls out of major City event to avoid economic meltdown amid Labour chaos
The Express exclusively revealed that the Chancellor backed out of the event on Tuesday morning.
Chancellor Rachel Reeves has pulled out of an event in the City of London on Tuesday morning, the Treasury has confirmed. Ms Reeves was due to take part in a “fireside chat” with the Lady Mayor of London at the City’s global risks summit after attending a crunch Cabinet. But her place will now be taken by Treasury minister Lucy Rigby, as Labour's leadership crisis and calls for Sir Keir Starmer to quit cause economic turmoil.
The Chancellor had been expected to address the current pressures and macroeconomic risks facing industry, government and regulators. She was among members of Cabinet to arrive at Downing Street on Tuesday morning, but did not respond to questions from reporters as she entered 11 Downing Street.
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Sir Keir is vowing to remain as Prime Minister despite mounting calls for him to quit, with reports that these include a number of ministers.
The beleaguered Labour leader told his gathered Cabinet that he plans to continue governing despite the fallout of weak local election results.
Four senior ministers – Technology Secretary Liz Kendall, Business Secretary Peter Kyle, Work and Pensions Secretary Pat McFadden and Housing Secretary Steve Reed – backed the Prime Minister after the meeting.
There were also reports on Tuesday that Rachel Reeves’ allies have argued she should remain at the Treasury even if Sir Keir steps down.
Ministers close to Reeves told the Financial Times that they fear a leadership context could result in chaos in an already shaky bond market.
It comes as the UK long-term borrowing costs have surged higher as Prime Minister Sir Keir’s leadership comes under increasing pressure.
The yield on 30-year UK Government bonds – also known as gilts – jumped as much as 11 basis points to 5.785% in Tuesday-morning trading, edging back up to within touching distance of the 28-year high recorded last week.
The yield on 10-year gilts also rose back above 5%, lifting by 10 basis points to 5.101%, but remains below recent highs reported last month.
Gilt yields move counter to the value of the bonds, meaning their prices fall when yields rise.
Rising yields on these bonds mean it costs more for governments to borrow from financial markets.
