Keir Starmer has insisted Rachel Reeves is doing a “fantastic job” amid mounting criticism of her performance as chancellor.
The prime minister gave her a huge vote of confidence amid fresh turmoil for the UK economy on the international money markets this morning.
The interest rates on the government’s long-term debt reached a 27-year high, piling further pressure on the public finances.
Inflation is also rising, while the economic growth promised by Labour has yet to materialise.
But speaking at a press conference in London, Starmer said: “Rachel Reeves is doing a fantastic job she has my full confidence and has the full confidence of the entire party.”
However, the PM dodged questions about whether Reeves would still be chancellor come the next general election.
Earlier, Pat McFadden, the chancellor of the Duchy of Lancaster, had also given Reeves his backing.
Asked if she would still be in post come the autumn, he said: “Yes, I do. And I think she was right to go to China. And furthermore, I think those who are saying she shouldn’t have gone to China were wrong.
“It’s quite right that the chancellor of the United Kingdom goes and beats the drum for British business and for investment in this country.”
He added: “Rachel Reeves is the chancellor for a good reason, because she’s the right person to do the job.
“And one of the things I’d say about those kind of stories is when we won the general election, we won it as a team that was not afflicted by the kind of rivalries and personalities that had sometimes afflicted governments in the past.
“And we govern as a team and Rachel’s got the support of me, the prime minister and the whole cabinet.”
Shadow financial secretary Gareth Davies later responded to Starmer’s support for Reeves, saying it “speaks volumes”.
He said: “Labour are trying to insist that everything is fine, but the fact that Keir Starmer has repeatedly refused to say whether Rachel Reeves will remain as Chancellor speaks volumes.
“The prime minister is looking for a scapegoat but this crisis was made in Downing Street by Rachel Reeves.
“The markets and businesses are watching, Labour promised stability and confidence but they have lost control. They must take action to reverse before this gets worse for families.”