The British Labour Government of Prime Minister Keir Starmer continues to unravel.
One day after his Welfare Reform vote debacle showed that Starmer is hostage to the left-wing MPs in his own party, his cabinet offered yesterday (2) a sad spectacle as Chancellor Rachel Reeves could be seen in live TV crying in Parliament.
(While in Germany a Chancellor is the equivalent of a Prime Minister, in Britain it’s roughly the same as a finance minister.)
Reeves’ tears ended up triggering a $4 billion market sell-off.
The Telegraph reported:
“The Chancellor was seen wiping away tears as Sir Keir Starmer raised doubts about her future by failing to confirm that she would stay in her role.”
The unprecedented scene sent UK borrowing costs soaring, and the pound fell one percent against the US dollar.
“Ms. Reeves’s show of emotion came the day after a welfare package designed to save the Treasury £4.5 billion a year was gutted, making it more likely she will need to raise taxes later this year.
[…] Government insiders were forced to deny speculation that she had argued with either Sir Keir or Angela Rayner, the Deputy Prime Minister.”
A spokesman for Reeves said of her tears: ‘It’s a personal matter’.
But it’s understood that Reeves will either have to break her own borrowing rules or else raise taxes again.
“Her challenge has been made harder by two about-turns – scrapping her winter fuel payment cut and ditching welfare reforms – which require an extra £6 billion a year to be found.”
Watch: Reeves’ tears in Parliament.
British Chancellor Ravel Reeves cries in Parliament while live on TV.
A representative for Reeves claimed she was upset over a ‘personal matter.’
— Oli London (@OliLondonTV) July 2, 2025
“Kemi Badenoch, the Conservative leader, used PMQs to say that Ms. Reeves looked ‘absolutely miserable’ and challenged Sir Keir to promise she would remain in post until the election. When he did not do so, Ms. Badenoch said: ‘How awful for the Chancellor that he couldn’t confirm that she would stay in place’.”
That’s when Reeves was seen wiping her eyes.
Watch: Reform UK’s Nigel Farage comments on Starmer’s defeat and Reeves’ tears.
‘It was actually, sitting opposite, quite difficult to watch.’
Reform UK Leader Nigel Farage gives his analysis of ‘a genuinely miserable’ 24 hours for the Government. pic.twitter.com/miwMOFaoHi
— GB News (@GBNEWS) July 2, 2025
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