The image of Rachel Reeves, tearful in the House of Commons, was not just a fleeting moment of emotion, it was a turning point in her political journey. For many across the UK, it sparked a serious question: has Rachel Reeves resigned?
In an era where political accountability is scrutinised under a microscope, such a public display of vulnerability ignited waves of speculation, analysis, and debate.
As Chancellor of the Exchequer in a Labour-led government facing economic headwinds and internal resistance, Reeves has been under immense pressure. Her fiscal decisions, attempts at austerity, and political messaging have created fractures, not just between parties, but within her own.
Let’s take a closer look at the ongoing drama, the rumours, the policies, and the real question the UK is asking today.
Why Was Rachel Reeves Visibly Upset in the Commons?
In early September 2025, a visibly emotional Rachel Reeves appeared in the Commons during Prime Minister’s Questions. The timing was critical, as it followed a deeply controversial welfare U-turn that had split the Labour Party.
While many speculated it was related to political pressure, her spokesperson clarified that Reeves had been dealing with a personal matter.
The Political Context
Despite her tears, Reeves sat through a barrage of criticism led by Conservative MP Kemi Badenoch, who labelled her the “human shield” for what she described as the Prime Minister’s economic incompetence.
Badenoch’s remarks targeted Reeves’ management of the budget and welfare reform policies, which had recently been scaled back due to mounting opposition from Labour MPs.
Internal Party Pressure
Reeves’ upset wasn’t solely due to external attacks. She faced mounting resistance within her own party. The controversial decision to cut Universal Credit sickness benefits from £97 to £50 for new claimants sparked outrage from 49 Labour MPs who voted against the bill.
The Chancellor, despite being a long-standing advocate for fiscal discipline, was now navigating a landscape where even her allies were turning on her.
What Triggered the Welfare U-turn and How Did It Affect Reeves?
The welfare U-turn became the epicentre of the storm surrounding Reeves. Originally intended to save the government an estimated £5 billion, the proposed welfare reforms included significant cuts to disability benefits and the Winter Fuel Payment for pensioners.
Key Elements of the U-turn
- Scrapping of the Winter Fuel Payment changes
- Withdrawal of major disability benefit reforms
- Reduction of Universal Credit sickness benefits to £50 (from £97) for new claimants, delayed until 2026/7
However, faced with an unprecedented rebellion from within her own ranks and pressure from welfare advocacy groups, the government was forced to water down the bill significantly.
Political Fallout
| Welfare Policy | Initial Plan | Revised Plan |
| Universal Credit | Cut from £97 to £50 for all | Only for new claimants starting 2026/7 |
| Winter Fuel Payment | Scrapped for most pensioners | Policy reversed |
| Disability Benefit Reform | Major overhaul | Largely abandoned |
The U-turn weakened Reeves’ standing. Critics argued that her rigid commitment to fiscal rules made her tone-deaf to public sentiment. Her refusal to pivot earlier exacerbated the damage.
Did Rachel Reeves Actually Offer Her Resignation?
Despite rampant rumours, there has been no formal resignation from Rachel Reeves. Downing Street confirmed that the Chancellor is “going nowhere.”
Downing Street’s Statement
A Number 10 spokesperson stated unequivocally:
“Rachel Reeves has not offered her resignation and is going nowhere. She continues to have the full support of the Prime Minister.”
Even after her emotional Commons appearance, the Prime Minister met with her personally and reaffirmed his backing. This was intended to quell speculation but didn’t stop the questions.
Why the Confusion?
The speculation stemmed not just from her emotional display, but from Keir Starmer’s refusal to guarantee that Reeves would remain Chancellor until the next election. His silence left the door open for conjecture.
How Has No. 10 Responded to the Resignation Rumours?
No. 10 has made multiple attempts to dispel resignation rumours. The language used, “going nowhere,” “full backing”, suggests a coordinated PR response designed to project strength and unity.
Support from the Prime Minister
Sky News reported that the Prime Minister spoke to Reeves privately after PMQs, reassuring her of his complete support. Yet, his public statements remain cautious, perhaps hinting at future reshuffles or a lack of long-term commitment.
A Calculated Show of Support?
Political analysts suggest that while the support is real, it is also strategic. Keeping Reeves in place prevents further chaos in the markets and avoids the appearance of internal collapse just months before crucial local elections.
Is Rachel Reeves Losing the Confidence of Her Own Party?
There is growing discontent within Labour ranks. The welfare U-turn exposed deeper ideological rifts between the party’s centrist leadership and its left-leaning MPs.
Key Signs of Diminishing Confidence
- 49 Labour MPs rebelled during the welfare vote
- Reeves faced criticism from senior Labour figures about her strict fiscal rules
- Internal whispers claim her credibility is waning
Some MPs have gone on record saying, “The Chancellor is toast,” reflecting a belief that her authority has been permanently damaged.
Has Rachel Reeves Resigned from Handling the Second Budget?
While Reeves has not resigned as Chancellor, she has indeed ceded control over her second Budget, an alarming development.
The Role of Torsten Bell
Torsten Bell, Chief Executive of the Resolution Foundation and former Treasury official, has reportedly been brought in to assist in rewriting the second Budget. Reeves’ first Budget faced widespread criticism for increasing debt and stalling growth.
Some insiders say she was “forced to draft in” Bell after her original proposals imploded.
Impact on Reeves’ Authority
This move has been interpreted as an implicit demotion. With Bell at the helm, Reeves now has less control over the narrative, strategy, and execution of fiscal policy.
What Impact Did Reeves’ Policies Have on the UK Economy?
Reeves’ first Budget failed to inspire market confidence. Her strict adherence to fiscal discipline clashed with the political reality of a divided Parliament and restless public.
Economic Indicators Post-Budget
| Economic Indicator | Pre-Budget | Post-Budget |
| Government Borrowing (2025) | £104bn projected | £126bn actual |
| Job Losses | – | 174,000 estimated |
| Gilt Yields (10-year) | 4.46% | 4.68% |
| GBP vs USD | 1.31 | 1.24 |
Investor Sentiment
Bond markets have reacted negatively to the lack of clear, stable policy. The rise in gilt yields signals that investors are demanding a higher premium to lend to the UK, fearing fiscal mismanagement.
How Are Labour Ministers Reacting to Reeves’ Budget Cuts?
Reeves’ attempts to impose budget discipline have led to fractures within the cabinet.
Cabinet Pushback
- Ministers resist departmental budget cuts
- Fear of backlash from constituents and unions
- Internal lobbying to exclude their departments from cuts
Some ministers have accused Reeves of acting without consensus, creating friction that may undermine Labour’s broader legislative agenda.
The Begging Bowl Allegory
One senior MP described Reeves as “rattling a tin on Whitehall,” as she lobbies colleagues for modest spending reductions. Her authority appears weakened, and ministers seem more concerned with protecting their own reputations than supporting her agenda.
Can Rachel Reeves Survive the Mounting Political Pressure?
Despite the chaos, Reeves is known for her resilience. However, survival will depend on several factors.
Key Challenges Ahead
- Rebuilding trust within the Labour Party
- Delivering a coherent and growth-driven second Budget
- Restoring market confidence
- Avoiding further U-turns or policy collapses
Possible Outcomes
| Scenario | Probability (Est.) | Impact |
| Reeves Retains Role Through 2026 | 60% | Stabilises Labour’s position |
| Cabinet Reshuffle Before Spring 2026 | 25% | Political turbulence, markets react |
| Reeves Resignation | 15% | Severe internal crisis |
Her political future hangs in a delicate balance between party loyalty, economic recovery, and public perception.
Has Rachel Reeves Resigned? Here’s What We Know So Far
So, has Rachel Reeves resigned? As of now, the answer is no.
- She remains Chancellor of the Exchequer
- She has the public backing of No. 10
- She is preparing her second Budget with external help
- She continues to face political and personal challenges
While the question may linger in headlines, the facts are grounded: Rachel Reeves remains in office, for now. But whether she will remain a central figure in Labour’s vision for Britain depends on how she navigates the storm ahead.
Conclusion
Rachel Reeves has not resigned, but her tenure as Chancellor is undoubtedly under immense strain. From internal party clashes to brutal media scrutiny, and from policy failures to economic turmoil, she stands at the crossroads of resilience and resignation.
Her emotional Commons moment served as a human reminder of the pressure public officials face. But politics is a results-driven game. As Reeves prepares to deliver her second Budget, the stakes couldn’t be higher, for her, for Labour, and for the country.
Only time will tell whether this chapter in Reeves’ career is a momentary storm or the beginning of a wider unraveling. But as it stands now, she’s not stepping down. She’s stepping up to face the fire.
FAQs
Is Rachel Reeves still the Chancellor of the Exchequer?
Yes, Rachel Reeves is currently serving as the Chancellor and has not resigned.
Why was Rachel Reeves emotional in Parliament?
She was reportedly affected by a personal matter, according to her spokesperson, though political tensions were also high.
Has the Prime Minister confirmed Reeves will remain Chancellor?
He has expressed support but stopped short of confirming her role beyond the next election.
What caused the welfare U-turn?
Widespread opposition within Labour and public backlash led to a reversal of key welfare policies.
Who is helping with the second Budget?
Torsten Bell has been brought in to assist with rewriting the second Budget after criticism of the first.
How has Reeves’ economic policy affected the UK?
Her fiscal strategies led to increased borrowing, job losses, and market instability.
Is there a risk of Rachel Reeves resigning soon?
While she hasn’t resigned, ongoing political pressure makes it a possibility.
