Appearing at the World Economic Forum in Davos, the Chancellor also said Labour’s plan for the economy would ‘reap dividends this year’ as inflation begins to get back to target
Rachel Reeves has said it would be a “stupid idea” for anyone to challenge Keir Starmer for the Labour leadership.
Appearing at the World Economic Forum in Davos the Chancellor was told by Bloomberg TV some investors may be worried about a more “left-wing PM and Chancellor getting in”.
But the Chancellor responded: “I really don’t think people need to worry about that. Keir won a massive majority – the Parliamentary Labour Party, the Cabinet, want the PM to succeed. Even if someone did have the stupid idea of challenging the Prime Minister it is incredibly difficult to do so and I have every confidence that Keir will continue to be PM all through this term, I will continue to be Chancellor and hopefully into the second term as well.”
Her comments to Bloomberg TV at the Davos summit comes as Labour faces a potentially bruising set of elections across England, Scotland and Wales in May.
Before last year’s Budget there was an explosive briefing war at the top of government’s over Mr Starmer’s position amid concerns there could be a move against the PM if the elections prove a disaster. At the time, Mr Starmer vowed to The Mirror he will lead Labour into the next election as he came out fighting against speculation about his future.
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Ms Reeves also warned today that Nigel Farage, who is also appearing at the summit in Davos this week, would be “very bad news” for the economy. Pressed on whether the right-wing leader’s presence in Davos would overshadow the government’s work, Ms Reeves blunty relied: “No.”
She went on: “He’s got seven MPs in Parliament, or maybe a couple more. Who knows how many Tories have defected today. He’s got a small number of MPs, he’s lost almost as many MPs as he’s gained in this Parliament because he’s incapable of working with us.
“I’m not worried about Nigel Farage. I believe that our plan is the right one. We’re improving the cost of living for working people in Britain, we’re bringing investment to Britain. Inflation and interest rates are coming down. Last year we had the second fastest growing economy in the G7 – our plan is the right one. It will begin to reap dividends this year, especially as inflation begins to get back to target.”
Elsewhere it was reported Ms Reeves was in talks with Housing Secretary Steve Reed over Labour’s promise to cap ground rents for leaseholders in England and Wales.
In an article on Tuesday, former Deputy PM Angela Rayner urged the government to stick by the manifesto pledge to end the scandal of unaffordable fees. Writing in the Guardian, she said: “This government has a fresh opportunity to show whose side it is on – by ending the scandal of unregulated and unaffordable ground rents faced by leaseholders, as we pledged in our manifesto.”
Ms Rayner went on: “As things stand, this Labour government has a record on leasehold reform we can be proud of. We have already switched on a range of new protections and rights for leaseholders. Our draft leasehold and commonhold reform bill can move us on from the feudal leasehold system – but not without meaningful action to tackle ground rents; at the very least, an annual cash cap.
“If Labour cannot fix such an obvious injustice and show families whose living standards have been crushed that we will fight for them, then we shouldn’t be surprised if they lose faith that anything can change.”