'Worst chancellor for 50 years' Rachel Reeves 'won't make Downing Street Christmas Party'

Rachel Reeves’ may be gone before the Downing Street Christmas Party, financial experts warn, as the UK markets suffer fresh turmoil. On Tuesday, the Chancellor announced the date of the looming Autumn Budget as November 26 of this year, saying “there's more to do”. This comes after borrowing costs soared to a 27-year-high. On Monday, the country’s gilt yields, the interest rate on money the government borrows, hit 5.72%, as the pound fell more than 1% against the dollar.

Financial experts now warn of a “historic debt crisis” amid the Chancellor’s economic disaster, questioning her longevity in the post. Riz Malik, director at Southend-on-Sea-based R3 Wealth said: "There is a reason I’m not a brain surgeon and that is because I am not suitably qualified. The fact our current Chancellor has lasted so long is already surprising especially with her CV revisions. However, going before the budget would be a big mistake when we are already in a very fragile position. Will she make the Downing Street Christmas party? That’s another question."

Similarly, Tony Redondo, founder at Newquay-based Cosmos Currency Exchange, says a pre-Budget departure may risk “a historic debt crisis".

"Reeves is the worst Chancellor since Denis Healey, steering the UK toward fiscal delinquency,” he said.

“Paradoxically, her departure would likely trigger something worse, guaranteeing a historic debt crisis. Changing the Chancellor now would undermine market confidence by signalling policy chaos. Markets punish uncertainty more than consistency, even when disagreeing with direction."

He added: “The question isn't whether Reeves should go, but whether the government can restore fiscal credibility fast enough to prevent a deeper crisis—far more damaging than leadership change."

The latest spike on the yields for 30-year bonds came after the Prime Minister moved Ms Reeves deputy Darren Jones from Number 11 to a new post at Number 10 as his Chief Secretary.

Treasury minister James Murray replaced Mr Jones as Treasury chief secretary, and will now effectively be acting as the Chancellor’s deputy.

"This is the last chance saloon for Reeves, and the PM knows it”, Samuel Mather-Holgate, Independent Financial Adviser at Swindon-based Mather and Murray Financial warns.

“That's why he has surrounded himself with economic advisers, in case the markets turn against Reeves after the Budget. They have so far supported her as Chancellor, occasionally keeping her in check, but it is proving to be a tightrope between keeping the financial markets and the electorate happy, and I fear it's one she cannot win."