Chancellor of the Exchequer, Rachel Reeves, who has led the Treasury since July 2024, became visibly emotional during Prime Minister’s Questions today (2 July). The emotional moment came as Keir Starmer refused to confirm whether the Chancellor would remain in her role, amid growing uncertainty over the party's economic direction.

The tearful moment was followed by intense criticism from Tory leader Kemi Badenoch over the collapse of Labour’s flagship welfare reform, particularly the scrapped Personal Independence Payment (PIP) cuts originally meant to save around £5 billion annually. Backs against the wall, Reeves struggled to maintain composure as MPs watched.

The PMQs marked the largest internal rebellion of Starmer’s premiership, with roughly 49 Labour MPs voting against the watered‑down welfare bill. Badenoch seized on the emotional scene, accusing Reeves of being “a human shield for his incompetence” and declaring she looked “absolutely miserable".

Reeves has recently been facing growing criticism from within her own party and beyond, following a string of controversial policy decisions that have rattled markets and alienated key segments of the electorate.

One of Reeves’ most contentious moves was her proposal to scale back Personal Independence Payments (PIP), a vital benefit for disabled people, with the aim of saving £5 billion. The plan triggered uproar across the political spectrum, with more than 100 Labour MPs expressing concern. Facing intense pressure, Reeves and the government ultimately reversed course, scrapping the reforms just weeks after announcing them.

This abrupt U-turn has left a £4–5 billion black hole in Labour’s budget, calling into question Reeves’ ability to maintain fiscal discipline. Critics say it has damaged her credibility, especially as it coincided with separate announcements to scrap winter fuel payments for nearly 10 million pensioners, another measure seen as punishing society’s most vulnerable.

In a press briefing following the PMQs, Downing Street reiterated unequivocal support for Reeves. A spokesperson emphasised that she “will remain as Chancellor” and enjoys the PM’s “full backing” as she continues to navigate the fallout from the welfare reversal.

Despite the public speculation, the Chancellor's office emphasised that her emotional state was due to a personal matter and not related to political pressures. A spokesperson for Reeves confirmed that she would be working from Downing Street that afternoon, indicating that she remained engaged in her duties.