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How much trouble is Rachel Reeves in? The FIVE steps that could force the Chancellor to resign as scandal deepens

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Sir Keir Starmer has made it clear that Rachel Reeves will continue in her role as Chancellor for the entire duration of the current parliament. However, there are five possible ways that could push him to reconsider this decision.

Recently, there have been increasing calls for Rachel Reeves to step down. This comes after a BBC News investigation brought to light some concerns about the accuracy of her online CV and her use of expenses during her time at a bank.

In response, a spokesperson for Reeves stated that she was not aware of any investigation, was not interviewed, and faced no disciplinary actions regarding these or any other issues. A minister also defended her, mentioning on GB News that Reeves has apologized and that her LinkedIn profile was managed by someone else.

However, Reeves is facing more significant challenges. She has centered her fiscal policy on promoting economic growth, but recent preliminary reports from the Office for Budget Responsibility (OBR) have downgraded growth forecasts.

This suggests that the financial flexibility she had might be much less than previously thought, potentially forcing her to cut public spending or increase taxes.

Additionally, her strategy to address a £22 billion deficit by altering inheritance tax rules for farmers and eliminating winter fuel payments for many pensioners has not been popular and has further decreased her public support.

Last month, the Prime Minister dismissed suggestions to replace Reeves, affirming that they would continue to work together throughout this parliament. Yet, her position is not entirely secure. While Starmer has the final say, various political, party, and public factors could compel him to act.

Here are five scenarios that could lead to Reeves’ resignation:

  1. Cabinet Reshuffles: Prime Ministers sometimes reorganize their cabinet to refresh their team without directly firing anyone. If Starmer feels that Reeves’ policies might lead to electoral losses, he might consider a cabinet reshuffle to change the team dynamics.
  2. Personal Disagreements with the Prime Minister: Even though Starmer currently supports Reeves, their relationship could deteriorate due to internal party politics or disagreements over government policies. Historical examples include Sajid Javid and Nigel Lawson, who resigned due to conflicts with their respective Prime Ministers.
  3. Public Scandals or Controversies: In politics, public perception is crucial. If a scandal or significant controversy arises, especially one that gains media attention, it could force Reeves to resign. An example from the past is Norman Lamont, who resigned after the economic fallout from “Black Wednesday.”
  4. Pressure from Within the Party: If enough Labour MPs or key groups within the party express dissatisfaction with Reeves, it could undermine her position. Internal party pressure has led to resignations in the past, such as that of Charles Clarke, who stepped down as Home Secretary after significant internal criticism.
  5. Vote of No Confidence: While there’s no formal procedure for a vote of no confidence in an individual minister, MPs could challenge the Prime Minister’s decisions. If Starmer’s support for Reeves conflicts with public opinion and leads to a rebellion among MPs, he might have to prioritize party unity over individual positions.