Rachel Reeves in tears: What’s going on in the Labour Party?
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Rachel Reeves was seen in tears in the House of Commons, hours after Labour scored a difficult win for its welfare reform bill. There is now speculation about the cause of her emotional state, and what this means for the future of the chancellor, the PM, and the Labour government.
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In brief…
- In an “uncomfortable watch”, Rachel Reeves cried while sitting next to Keir Starmer in the House of Commons, as the Prime Minister failed to show support to his chancellor.
- Despite winning a Commons vote on welfare reforms, The News Agents describe it as a “defeat” due to major concessions being made to appeal to rebel Labour MPs – but is the government’s huge majority to blame for this dissent?
- Downing Street has denied Reeves may lose her job, and The News Agents say it is crucial that Labour hold firm if it wants voters to believe it is able to govern the country.
What’s the story?
Rachel Reeves was seen crying on the front bench in the House of Commons today, hours after Labour scraped a parliamentary win on its controversial welfare reforms.
It wasn’t the victory Reeves, Keir Starmer and the Labour government were hoping for. With a goal to claw back £5 billion a year, sweeping changes to Personal Independence Payments (PIP) were planned – but these were fiercely opposed by an estimated 120 Labour MPs, and the government was forced to make massive concessions to its plans in order to win the Commons vote.
The chancellor’s tears flowed as she sat next to Starmer during Prime Minister’s questions on Wednesday 2 July, with Jon Sopel describing the scene as the most “surreal” PMQs he’s ever seen.
A spokesperson for the government has said that Reeves was dealing with personal issues, but there have also been suggestions that a clash with Commons speaker Lyndsey Hoyle may have been the real reason for Reeves' emotional state.
When Tory leader Kemi Badenoch asked Starmer if he intended to keep Reeves in her role, the Prime Minister turned the question back on his opposition and simply criticised her method of questioning.
“At the point where he doesn't endorse his Chancellor, her face seems to crumple,” says Emily Maitlis.
“It was a really, really uncomfortable watch.”
Rumours about her future as chancellor have resulted in a drop in the value of the pound and instability on UK markets.
Why was Rachel Reeves crying in PMQs?
Is Labour’s huge majority to blame?
Labour swept to victory in the July 2024 election, and currently has a majority government of 156 seats.
While it might seem like this would put the government in a strong position, The News Agents believe Starmer and his cabinet are now seeing the negative side to holding such a strong majority.
“The larger the majority, the more people feel they have their freedom to go off piste,” Emily says.
“If you have a tiny majority, then every single MP knows the importance of their vote – you cannot go for your own ideology or your own constituency or community.
“I don't think anyone has that sense of collective responsibility at the moment, because it's so big.”
During Tuesday night’s vote on welfare reform, 49 Labour MPs voted against their own party, and Jon says after this – and Reeves tears the day after, he has never seen a government so “enfeebled” before in his career
“They got it through, but it felt like a defeat, because politically, it has weakened Starmer enormously.” Emily adds.
“It has basically shown he's lost his authority. It has weakened the chancellor, who didn't manage to get her savings, wiping out completely the £5 billion that she said the welfare reforms would save.
“It has been economically and politically, an utter shambles.”
Is Reeves on the way out – and could Starmer follow?
Downing Street has stressed that Reeves has not lost her job, nor has she resigned.
And while the government may seem fragile at the moment, The News Agents say it is crucial for Labour to keep its key players in place for its short-term, and long-term prospects.
Emily says Starmer’s future as PM is inextricably linked to Reeves, and that losing her from such a prominent and vital role in government could be catastrophic to Labour.
“There is a danger that Labour looks like a party that can't govern,” she says.
“They were voted in to change, and he now cannot change anything. Starmer cannot deliver the radical party that he promised the country a year ago.
“Starmer can't go because Labour wouldn't be back in power for another decade, for another two decades.”
"It would be a mistake to get rid of Rachel Reeves," former Chief of staff to Keir Starmer Sam White says
What next for Starmer and the Labour government?
Expectations, for now, are that Starmer's front bench will remain unchanged, but the events of the past 24 hours could result in some major changes to how Starmer runs his government going forward.
Labour came into government with 411 MPs, but after a year in power, some still claimed they had never met, spoken with, or been contacted by the PM.
“I think Keir will be asking himself questions about what he needs to do differently in terms of his relationship with backbench MPs and the parliamentary Labour Party," Sam White, Starmer's former chief of staff, tells The News Agents.
He calls the welfare reform concessions “bruising”, and says no government wants to make u-turns on policy, but says people in politics are often too quick to claim things are "all over" for a government when things don’t go to plan. “I've lost count of the number of times Keir has been written off,” White adds. “I think it's premature to say there's been a big rebellion, and that's it for the government.”
As well as his support for Starmer, White also maintains his belief in Reeves as chancellor.
“I don't think he'll get rid of Rachel Reeves. Her judgment is very good, and I think she has a very difficult job on her hands," he adds. “She's never going to do a Liz Truss where she lets the market completely lose faith in the British economy again.”
He says the drop in the markets is due to support for Reeves in the financial sector, and the widespread understanding that difficult choices need to be made to regain control of public finances.
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