No 10 backs under-pressure Reeves as PM bets on AI

Keir Starmer pledges to make Britain tech 'superpower'

- MILLIE COOKE, DAVID MADDOX

Downing Street has insisted that Rachel Reeves will be the chancellor "for the whole of this parliament" as speculation mounted that Sir Keir Starmer may sack her.

The vote of confidence came yesterday afternoon after Sir Keir had appeared reluctant to back the beleaguered Ms Reeves. He told journalists that she has his full confidence and is doing a fantastic job, but avoided the question the first time it was asked and then dodged questioning over whether his chancellor will still be in post at the next election.

The prime minister's remarks came amid mounting pressure on Ms Reeves as the value of the pound fell and government borrowing costs remained high. While he defended the chancellor's handling of the economy, he declined to guarantee she would remain in No 11 for the duration of the parliament.

The PM signalled his intention to pull every lever possible to boost growth in his east London speech yesterday, where he said artificial intelligence could help "turn around the economy".

Sir Keir pledged to make Britain an AI superpower, warning that the "battle for the jobs of tomorrow is happening today".

The pound fell to a fresh 14-month low yesterday, slumping another 0.6 per cent to $1.21 after last week hitting its lowest level against the dollar since November 2023. UK government bonds also known as gilts - continued to see 10-year yields hit fresh highs not seen since 2008, at 4.9 per cent.

Answering questions following a speech on the government's plan for artificial intelligence in London the prime minister stressed that the Treasury will meet its fiscal rules - including requiring day-to-day spending to be met from revenues rather than further borrowing.