DAY OF DRAMA LEAVES REEVES ON BRINK

SIR Keir Starmer is desperately scrambling to contain a growing crisis after Rachel Reeves cried at PMQs.

- By Martyn Brown and Jonathan Walkor

Spooked markets were sent into turmoil and the pound tumbled immediately after the Chancellor's emotional appearance.

The PM refused to guarantee her job amid Labour's humiliating welfare fiasco.

Tears trickled down Ms Reeves' cheek as Kemi Badenoch blasted that she was now "toast" "toast" with Britons facing major tax hikes to pay for the debacle. The Chancellor was seen being comforted by her sister Ellie — also a Labour minister — as she left the chamber, although Sir Keir did not speak to her.

Ms Reeves’ spokesman insisted afterwards it was a “personal matter”, and said she would continue to work during the afternoon.

Downing Street said the Chancellor “is going nowhere”, had not resigned and retains the PM’s “full backing”.

And it denied claims Ms Reeves had an argument with Sir Keir before they entered the Commons yesterday.

Shortly before PMQs Ms Reeves was overhead telling Sir Lindsay Hoyle: “I’m under pressure.”

The Speaker had apparently rebuked the Chancellor for giving long answers during Treasury questions the previous day.

However the markets reacted badly to the weeping — shown on live TV — with 10-year bond yields rising and the pound falling against the dollar. The one-day yield movement was the worst since October 2022, after the Liz Truss mini-Budget.