Rachel Reeves has withdrawn from a scheduled appearance at the City of London amid escalating political pressure on Keir Starmer and renewed volatility in financial markets.
The Chancellor had been due to take part in a “fireside chat” at the City’s global risks summit on Tuesday morning, following a Cabinet meeting, but the Treasury confirmed she would no longer attend. She was replaced by junior minister Lucy Rigby.
No official reason was given for the change, though the decision comes at a moment of heightened political tension in Westminster, with questions mounting over the Prime Minister’s future following weak local election results and reports of internal dissent.
Reeves was present at Downing Street earlier in the day but declined to answer questions from reporters as she arrived at 11 Downing Street.
Her withdrawal comes as speculation intensifies over the stability of the government’s top leadership, with reports that several senior ministers have privately raised concerns, even as others publicly rally behind Sir Keir.
Following an emergency Cabinet meeting, four senior figures — Liz Kendall, Peter Kyle, Pat McFadden and Steve Reed — were said to have expressed support for the Prime Minister.
However, the political uncertainty has coincided with renewed turbulence in the bond markets, where investors have reacted nervously to shifting expectations around fiscal policy and leadership continuity.
Yields on long-term UK government debt rose sharply again on Tuesday morning, with 30-year gilts climbing as much as 13 basis points to 5.807pc before easing slightly. Ten-year yields also moved higher, though they remain below recent peaks.
Rising gilt yields increase the cost of government borrowing and are closely watched as a barometer of investor confidence in economic and political stability.
Ministers close to the Chancellor have reportedly argued that any leadership change at this stage could risk further destabilising already fragile markets, according to the Financial Times.
Reeves is said to be concerned about the impact of political uncertainty on borrowing costs and financial stability as the Government attempts to maintain credibility with investors while navigating weaker growth and persistent inflation pressures.
The Treasury has not commented on whether she will reschedule her City appearance.
The developments add to a growing sense of unease across Westminster and the financial sector, where markets are increasingly sensitive not only to economic data but also to signals of political cohesion at the heart of government.
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