Chancellor Rachel Reeves Dismisses Labour Leadership Challenge as 'Stupid Idea' at Davos
Chancellor Rachel Reeves has delivered a robust defence of Prime Minister Keir Starmer's leadership, describing any potential challenge to his position as a 'stupid idea' during her appearance at the prestigious World Economic Forum in Davos. The Chancellor's unequivocal comments come as the Labour government faces a crucial set of elections across England, Scotland, and Wales this May.
Reeves Confident in Starmer's Leadership and Economic Plan
Speaking to Bloomberg Television at the Swiss summit, Reeves was asked about investor concerns regarding the possibility of a more left-wing Prime Minister and Chancellor emerging. She responded with characteristic bluntness, stating: 'I really don't think people need to worry about that. Keir won a massive majority - the Parliamentary Labour Party, the Cabinet, want the PM to succeed.'
The Chancellor went on to emphasise the practical difficulties of mounting a leadership challenge, adding: 'Even if someone did have the stupid idea of challenging the Prime Minister it is incredibly difficult to do so and I have every confidence that Keir will continue to be PM all through this term, I will continue to be Chancellor and hopefully into the second term as well.'
Economic Optimism Amid Political Speculation
Reeves used the Davos platform to promote Labour's economic strategy, expressing confidence that their plan would 'reap dividends this year' as inflation continues to move toward target levels. She highlighted several positive indicators:
- Britain achieved the second fastest growing economy in the G7 last year
- Inflation and interest rates are steadily decreasing
- Investment is being attracted to British businesses
- Working people are experiencing improvements in their cost of living
'Our plan is the right one,' Reeves asserted. 'It will begin to reap dividends this year, especially as inflation begins to get back to target.'
Dismissing Farage and Addressing Domestic Concerns
The Chancellor also addressed the presence of right-wing leader Nigel Farage at the Davos summit, describing his potential influence as 'very bad news' for the economy. She dismissed concerns that Farage might overshadow the government's work, noting his limited parliamentary presence and inability to work constructively with Labour.
Meanwhile, domestic policy discussions continue within the government, with reports suggesting Reeves has been in talks with Housing Secretary Steve Reed about Labour's manifesto pledge to cap ground rents for leaseholders in England and Wales. Former Deputy Prime Minister Angela Rayner has publicly urged the government to honour this commitment, writing in the Guardian that failure to address this 'obvious injustice' could damage public trust.
Rayner emphasised: 'If Labour cannot fix such an obvious injustice and show families whose living standards have been crushed that we will fight for them, then we shouldn't be surprised if they lose faith that anything can change.'
The Chancellor's Davos appearance represents a significant moment of economic diplomacy and political positioning, as the Labour government seeks to project stability and confidence both internationally and domestically ahead of challenging local elections.
