There’s growing tension in Westminster as rumors swirl about a potential Cabinet reshuffle, with Chancellor Rachel Reeves at the center of the storm. Critics have accused Prime Minister Sir Keir Starmer of being too hesitant to replace Reeves, despite mounting criticism of her handling of the economy. Recent economic data has been bleak, with minimal growth figures and controversial decisions like means-testing winter fuel payments and increasing National Insurance contributions drawing widespread backlash.
Speculation is rife that several Cabinet ministers, including Education Secretary Bridget Phillipson and Culture Secretary Lisa Nandy, could be on the chopping block. However, the biggest question remains whether Reeves will keep her job. Former Conservative Chancellor Kwasi Kwarteng has weighed in, suggesting that Sir Keir is unlikely to sack Reeves because doing so could weaken his own position as Prime Minister. Kwarteng, who was famously dismissed by Liz Truss in 2022 after the disastrous “mini budget,” pointed out that removing a Chancellor often leads to instability at the top. “If you get rid of your Chancellor, they’re going to come after you next,” he warned.
Kwarteng also argued that even if Reeves were replaced, her successor—whether it be someone like Wes Streeting or another Labour MP—would likely follow similar policies. “There’s no other Labour MP that would do anything differently,” he said, dismissing the idea that a new Chancellor would bring significant change.
The economic outlook remains grim. Recent figures showed that the UK economy grew by just 0.1% in the last quarter of 2023, narrowly avoiding a recession. While this was slightly better than expected, it still reflects a stagnant economy. Shadow Chancellor Mel Stride has been vocal in his criticism, accusing Reeves’ budget of “killing growth” and claiming that working people and businesses are already feeling the pinch.
The situation could worsen in the coming months. The Office for Budget Responsibility (OBR) is expected to downgrade growth forecasts in its spring statement, potentially wiping out the £10 billion “headroom” Reeves had planned to use for future spending. This could force her to make tough decisions, such as cutting public spending or even raising taxes, to stay within fiscal rules.
As pressure mounts, the question of whether Sir Keir will stick with Reeves or make a bold move to replace her remains unanswered. For now, the Chancellor’s fate seems tied to the Prime Minister’s own political survival, with both facing an uphill battle to revive the economy and restore public confidence.
