Tearful Rachel Reeves backed as Chancellor by No10 after Sir Keir Starmer fails to give public support

During Prime Minister’s Questions, the value of the pound and gilts, which is the yield on Government bonds, dropped noticeably, while one bookmaker stopped taking bets on the Chancellor being out of a job by September.

But Ms Reeves’ spokesperson said she was dealing with a “personal matter” and No 10 said she had Sir Keir’s “full backing”.

Sir Keir, who stumbled on his way out of Downing Street for PMQs, faced questions over his handling of a welfare reform package which has been stripped of key elements to limit the scale of a Labour revolt.

As he approaches a year in office, the Prime Minister appears to be losing his authority amongst his MPs.

More than 120, including 17 Yorkshire MPs, opposed Sir Keir’s initial plans, forcing the Government to offer concessions to get the bill passed.

Changes to restrict eligibility for the personal independence payment (Pip) were abandoned on Tuesday just 90 minutes before MPs voted on them, wiping out the savings that Ms Reeves had counted on to help meet her goal of funding day-to-day spending through tax receipts rather than borrowing.

While 49 Labour MPs still voted against the bill - including eight from Yorkshire - leaving Sir Keir on the back foot.

Tory leader Kemi Badenoch said Ms Reeves, the Leeds West and Pudsey MP, looked “absolutely miserable” in PMQs and challenged the Prime Minister to say whether she would keep her job until the next election.

Sir Keir dodged the question about whether Ms Reeves would be in place for the remainder of the Parliament, saying Mrs Badenoch “certainly won’t”.

The Tory leader said after PMQs yesterday: “Today the Prime Minister refused to back his Chancellor, leaving her humiliated.

“She is the human shield for his expensive U-turns. How can anyone be a Chancellor for a man who doesn’t know what he believes and who changes his mind every other minute?”

As the Chancellor left the Commons after PMQs her sister, Ellie Reeves MP, took her hand in an apparent show of support.

Asked about her tears, a spokesman for the Chancellor said: “It’s a personal matter which, as you would expect, we are not going to get into.

“The Chancellor will be working out of Downing Street this afternoon.”

The Yorkshire Post understands that prior to PMQs, Ms Reeves was involved in a brief altercation with the Commons Speaker, Sir Lindsay Hoyle, regarding her conduct at Treasury Questions on Tuesday.

This is thought to be unrelated to the personal matter, and the Chancellor was seen to be visibly upset as she arrived in the House of Commons for PMQs. A spokeswoman for the Speaker said: “No comment.”

Asked why Sir Keir did not confirm in the Commons that he still had faith in Ms Reeves, the Prime Minister’s Press Secretary told reporters: “He has done so repeatedly.

“The Chancellor is going nowhere. She has the Prime Minister’s full backing.

“He has said it plenty of times, he doesn’t need to repeat it every time the Leader of the Opposition speculates about Labour politicians.”