Market reaction shows the Government must maintain fiscal discipline

That still does not excuse the Government’s poor handling of the welfare reform bill. And the Prime Minister shoulders the blame for the Government tying itself up in knots over the issue.

However, the lack of compassion towards Rachel Reeves was unedifying. Even if people disagree with the Chancellor, to use whatever was bothering her as a means to gain political capital is an example of why ordinary people so often switch off from Westminster politics. Politics is a tough business but politicians are human.

Some observers claim that the Chancellor has been left weakened by the Government’s welfare reform volte face but as the reality of the subsequent hole in public finances becomes clear, it strengthens Reeves’ position.

UK government borrowing costs rose sharply after speculation started to grow around Reeves’ position as Chancellor. However, UK government bonds rallied yesterday after Sir Keir Starmer said Rachel Reeves would be chancellor for a “very long time to come”.

It goes to show the importance of fiscal discipline. The welfare U-turn has left a £5bn black hole in the Chancellor’s public spending plans. Money that will need to be found from elsewhere.