Rachel Reeves has appeared in public with Sir Keir Starmer a day after breaking down in tears alongside the prime minister in the Commons.
The pair were both at the launch of the government’s 10-year plan for the NHS in London.
Speaking to broadcasters following following the launch, Ms Reeves declined to give the reason behind her tears.
“Clearly I was upset yesterday and everyone could see that. It was a personal issue and I’m not going to go into the details of that,” the chancellor said.
“My job as chancellor at 12 o’clock on a Wednesday is to be at PMQs next to the prime minister, supporting the government and that’s what I tried to do.
“I guess the thing that maybe is a bit different between my job and many of your viewers’ is that when I’m having a tough day it’s on the telly and most people don’t have to deal with that.”
She appeared to reject suggestions that her tears at PMQs were related to a conversation with Commons Speaker Sir Lindsay Hoyle or another member of government.
Key Points
- Rachel Reeves refuses to give the reason behind her tears at PMQs
- Starmer refuses to rule out further tax hikes
- Starmer insists Rachel Reeves doing 'excellent job'
For crying out loud: Are you ready for the ‘politics of pain’ about to hit us?
03:00 , Holly EvansKeir Starmer promised that the last Budget would be “painful”. In a speech in the Downing Street garden in August, two months earlier, he tried to manage expectations, saying that the state of the public finances was “worse than we ever imagined”, and asked people to “accept short-term pain for long-term good”.
It was a forlorn hope. Far from “accepting” the pain, public opinion turned against the government further after Rachel Reeves announced £25bn a year of tax increases, rising to £40bn a year by the end of this parliament.
Business leaders reacted particularly badly to the rise in employers’ national insurance contributions, causing the chancellor to over-correct when she addressed the CBI the following month. She told representatives that she was “not coming back with more borrowing or more taxes”.
Read the full analysis from John Rentoul here:
For crying out loud: are you ready for the ‘politics of pain’ about to hit us?
Which tax rises could Rachel Reeves introduce to pay for the £5bn welfare U-turn?
02:00 , Holly EvansThis week’s embarrassing climbdown on welfare saw the government’s benefits reforms gutted almost entirely, while savings from the bill were slashed from £5bn to nothing.
In the wake of the U-turn, there are now growing questions over how the government will raise the money to fill the black hole in the public finances.
Ministers have already squeezed significant savings out of their departments in cuts that were unveiled at last month’s spending review, meaning there is now a mounting expectation that the chancellor will be forced to raise taxes instead.
Read the full article here:
Which tax rises could Rachel Reeves introduce to pay for the £5bn welfare U-turn?
Ex-Labour MP Zarah Sultana to set up new party with Jeremy Corbyn
01:00 , Holly EvansA former Labour MP has announced her intention to co-lead the formation of a new political party with Jeremy Corbyn, the ex-Labour leader.
Zarah Sultana, whose Labour whip was suspended last year, confirmed her resignation from Sir Keir Starmer’s party.
In a statement posted on X, Ms Sultana, who represents Coventry South, stated the initiative would also involve "other independent MPs, campaigners and activists across the country".
Read the full article here:
Ex-Labour MP Zara Sultana to set up new party with Jeremy Corbyn
Kemi Badenoch’s lack of empathy over Rachel Reeves’s tears will come back to haunt her
Friday 4 July 2025 00:00 , Holly EvansThe trouble with Kemi Badenoch is that if she sees someone lying on the ground, she can’t resist the temptation to kick them. She lacks empathy, to put it politely.
There she was at Prime Minister’s Questions, facing an open goal for a change, and attacking the prime minister, who, even three days later, can look after himself. Then she spots the chancellor, Rachel Reeves, her lip quivering, seemingly on the brink of crying. Straight in goes the Badenoch boot – she said Reeves looked “absolutely miserable” and described her as Starmer’s “human shield”.
After Starmer failed to confirm Reeves in post for the rest of the parliament – a tall order for any appointee – Badenoch piled on the punishment: “How awful for the chancellor that he did not confirm she would be in post.”
Read the full analysis here:
Badenoch’s lack of empathy over Reeves’s tears will come back to haunt her
The markets have spoken – and it is they, not the prime minister, that saved Rachel Reeves
Thursday 3 July 2025 23:00 , Holly EvansThe markets have delivered their verdict. They want Rachel Reeves, and no one else will do. If the chancellor needed saving, they’ve done the job, boosting her political clout in the process.
The events of the last 24 hours have been quite remarkable, almost on a level with the Truss mini-Budget, when the City’s appalled reaction resulted in the near collapse of several big pension funds, and ultimately led to the end of a premiership before a now-infamous lettuce had rotted.
The tearful expression on the face of a visibly upset Reeves, and a less than ringing endorsement from a prime minister who had previously said she would be in place for the full parliament, triggered a panic, with some of the biggest movements in UK government bond prices recorded since the “Trussterf***” Budget.
Read the full article here:
The markets have spoken – and it is they, not the PM, that saved Rachel Reeves
Labour respond to Zarah Sultana resignation
Thursday 3 July 2025 22:28 , Holly EvansResponding to Ms Sultana’s statement, a Labour spokesperson said: “In just 12 months, this Labour government has boosted wages, delivered an extra four million NHS appointments, opened 750 free breakfast clubs, secured three trade deals and four interest rate cuts lowering mortgage payments for millions.
“Only Labour can deliver the change needed to renew Britain.”
MP Zarah Sultana resigns from the Labour Party
Thursday 3 July 2025 21:33 , Holly EvansMP Zarah Sultana has said that she is resigning from the Labour Party to “co-lead the founding of a new party” with Jeremy Corbyn.
Ms Sultana, who has sat in the Commons as an independent MP since she had the Labour whip withdrawn last year, represents the Coventry South constituency.
She said in a statement posted on X that she was “resigning from the Labour Party”.
“Jeremy Corbyn and I will co-lead the founding of a new party, with other independent MPs, campaigners and activists across the country.”
She said that “Westminster is broken but the real crisis is deeper” and the “two-party system offers nothing but managed decline and broken promises”.
She added: “A year ago I was suspended by the Labour Party for voting to abolish the two-child benefit cap and list 400,000 children out of poverty. I’d do it again. I voted against scrapping winter fuel payments for pensioners. I’d do it again. Now, the Government wants to make disabled people suffer; they just can’t decide how much.”
She urged people to “join us”.
MP likens Government to flat-earthers over refusal to compensate Waspi women
Thursday 3 July 2025 21:00 , Holly EvansSir Keir Starmer’s Government has been likened to flat-earthers by one of its own MPs, over its refusal to compensate women affected by state pension age changes.
Labour’s Rebecca Long Bailey said the arguments against compensation for the 1950s-born women are “bizarre” and akin to those made by people who believe the Earth is flat.
The Government last December ruled out a compensation package for women born in the 1950s, whose state pension age was raised so it would be equal with men.
This is despite Prime Minister Sir Keir Starmer and Chancellor Rachel Reeves being among the senior ministers to support the Waspi campaign when Labour was in opposition.
A report by the Parliamentary and Health Service Ombudsman (PHSO) had recommended the UK Government pay compensation to women born in the 1950s whose state pension age was raised so it would be equal with men.
The watchdog also said the women should be paid up to £2,950 each, a package with a potential total cost of £10.5 billion to the public purse, as poor communication meant they had lost out on the chance to plan their retirement finances.
Government still reforming ‘utterly broken’ welfare system
Thursday 3 July 2025 20:30 , Holly EvansThe Scottish Secretary has said the UK Government is still working to reform the “utterly broken” welfare system, following the substantial concessions made in Parliament earlier this week.
Ian Murray also said the Cabinet is in a “resolved” mood following the tearful appearance of Chancellor Rachel Reeves in the House of Commons.
Mr Murray, a former publican, visited Belhaven Brewery in East Lothian on Thursday – where he poured a pint which then had his face imprinted on the foam by a machine at the bar.
Speaking almost a year on from Labour’s general election win, Mr Murray said his party had achieved “a lot”, adding: “We’ve had 30 Bills through Parliament, the most that have ever been passed in the history of a new government.
“We’ve given 200,000 Scots the biggest pay rise, we’ve been able to set up GB Energy, we’ve stabilised the economy.”
On Tuesday, Sir Keir Starmer’s Government was forced into a last-minute climbdown in order for welfare legislation to pass its first parliamentary hurdle.
Corporate tax growth rate will stabilise before starting to decline, says minister
Thursday 3 July 2025 20:01 , Holly EvansThe rate of growth in corporate tax will begin to stabilise before it will start to decline in a “number of years”, the Minister of Finance has warned.
Paschal Donohoe said that profitability of large companies will start to drop after years of doing well, and their profits will be more associated with the United States.
He made the comments after the Government reported a sharp increase in corporate tax in June.
Exchequer returns, published on Thursday, for the last six months reveal that corporate tax generated 7.4 billion euro last month, which was 1.5 billion euro up from May.
During the first half of the year, the exchequer recorded a surplus of 4.5 billion euro, an increase of 1.4 billion euro compared to the same period last year.
Every Labour U-turn after PM reverses welfare cuts
Thursday 3 July 2025 19:30 , Holly EvansSir Keir Starmer has announced his latest U-turn: a £5bn change of course over his flagship welfare bill.
With just minutes to go before MPs were set to vote on an already watered down welfare bill, he confirmed plans abandon a key plank of the reforms in order to get them through parliament and avoid a mass rebellion from his own MPs.
The U-turn left the prime minister’s authority battered and left the chancellor with a gaping hole in the public finances.
Read the full article here:
Full report | Starmer banks on technology and AI to save the NHS as he unveils 10-year plan
Thursday 3 July 2025 19:01 , Jabed AhmedSir Keir Starmer insisted the future “already looks better” for the NHS as he unveiled a decade-long plan banking on AI and technology to lift the NHS out of crisis.
Unveiling Labour’s long-awaited 10-year plan for the NHS, published on Thursday, the prime minister said he would make the health service the most AI-enabled in the world, vowing that the NHS App would become the front door to the health service by 2028.
Sir Keir added that 1,700 new GPs had already been recruited, alongside thousands of mental health workers and millions of extra appointments.
Read the full report below:
Comment | For crying out loud: are you ready for the ‘politics of pain’ about to hit us?
Thursday 3 July 2025 18:29 , Jabed AhmedRead the full Voices piece from our chief political commentator John Rentoul below:
For crying out loud: are you ready for the ‘politics of pain’ about to hit us?
Ban on Palestine Action clears Parliament but faces legal challenge
Thursday 3 July 2025 18:25 , Holly EvansA ban on Palestine Action as a terror group is poised to become law after peers backed the Government move at Westminster but faces a legal bid to block it.
The House of Lords backed proscribing the group under the Terrorism Act 2000 without a vote.
A short time before, a so-called regret motion proposed by a Green Party peer criticising the measure was rejected by 144 votes to 16, majority 128.
The ministerial order, which has already been approved by MPs, will make it a criminal offence punishable by up to 14 years in prison to be a member of the direct action group or to support it.
However, it is unclear when the ban, which needs final sign-off by the Home Secretary, will come into force as the group is mounting a court challenge to try to temporarily block the move with a hearing scheduled on Friday, pending further proceedings.
Law change could see young people branded as terrorists 'by the weekend'
Thursday 3 July 2025 18:19 , Holly EvansYoung people “are going to be committing terrorist acts, probably, by the weekend”, the former independent adviser on political violence and disruption has warned.
Lord Walney said: “There is a gap in the law, it seems to me at the moment, where we ought to be able to place a restriction on an organisation that is committing systematic criminality in the name of a cause without necessarily branding them as terrorists.”
He said a law change could mean authorities do not “end up branding young people who are going to be committing terrorist acts, probably, by the weekend” as terrorists.
The independent crossbench peer who was previously a Labour MP later told peers: “I think we have to think more in the Labour movement about working people here, because they have been systematically targeted in defence factories. They have been deeply intimidated.
“At times, they have been violently injured, and it’s totally unacceptable for the Labour movement to say, ‘well that’s ok, because it’s in a cause’.”
Which tax rises could Rachel Reeves introduce to pay for the £5bn welfare U-turn?
Thursday 3 July 2025 17:59 , Millie CookeTax threshold freeze
The Treasury’s most likely move would be to extend the freeze on income tax thresholds. This means that as wages rise with inflation, over the years workers are dragged into higher tax bands and end up paying more.
A freeze on the threshold at which the higher 45 per cent tax rate is paid was one of the options suggested by Ms Rayner in her leaked memo. But there is growing speculation the government could extend the freeze across all tax brackets.
It’s a stealth tax, the impacts of which are not felt immediately, meaning it is normally better received among the general public compared with a direct hit to businesses or pay slips. But, if the freeze were extended to the end of the parliament, it could also bring in billions for the Treasury as earnings rise.
The freeze, which is already planned to last until 2028, is expected to drag around two million workers into higher tax bands.
Wealth tax
There have been calls from Labour MPs on the left of the party to introduce a wealth tax, calls which have only grown in the wake of Tuesday’s welfare climbdown. Rachael Maskell, the architect of the rebellion which forced the government into shelving key pillars of the bill, demanded the government increase taxes on the very richest to pay for the £5bn climbdown.
Polling conducted by YouGov on behalf of Oxfam on the eve of the spring statement found more than three-quarters of people (77 per cent) would rather the government increase taxes on the very richest to improve public finances than see cuts to public spending. However, such a tax - which could look like a 2 per cent tax on net assets worth more than £10m - is thought to be very hard to implement, and could also lead to some of Britain’s highest earners leaving the country.
Royal College of Nursing say staff are 'crying out for change'
Thursday 3 July 2025 17:52 , Holly EvansRoyal College of Nursing (RCN) general secretary, Professor Nicola Ranger, said: “Nursing staff are crying out for change and we stand ready to get behind this plan.
“Modernising services, bringing care closer to home and helping people to lead healthier lives couldn’t be more necessary…
“Nursing staff are identified today as the expert leaders to deliver a neighbourhood health service and that should be truly empowering. As the professionals delivering the vast majority of care, we know what keeps patients safe and well.”
House of Lords debate proscribing Palestine Action as terror group
Thursday 3 July 2025 17:33 , Holly EvansA group “formed five years ago” should not be “conflated with the legitimate campaign for Palestinian rights and statehood”, a Home Office minister has warned.
Launching a debate on the Terrorism Act 2000 (Proscribed Organisations) (Amendment) Order 2025, Lord Hanson of Flint said: “The group known as Palestine Action – the public attention it has garnered should not be confused with legitimacy.
“And nor should a group formed five years ago be conflated with the legitimate campaign for Palestinian rights and statehood which has existed in our country and indeed across both Houses of Parliament for more than five decades.”
Speaking in the Lords, he added: “Freedom of expression, freedom of assembly are cornerstones in our democracy.
Watch | Reeves says she was 'clearly upset' at PMQs and reasserts it was 'a personal issue'
Thursday 3 July 2025 17:28 , Jabed AhmedStarmer pays tribute to Labour peer Lord Lipsey
Thursday 3 July 2025 17:13 , Holly EvansSir Keir Starmer has paid tribute to Lord Lipsey, the Labour peer found dead after swimming in the River Wye.
The Prime Minister said: “David was loved and respected by so many. Whether it was his early years as a researcher and adviser, or his quarter of a century in the House of Lords, he worked tirelessly for what he believed in.
“He will be sorely missed by all who were fortunate to know him, in Parliament and beyond. My thoughts are with his wife, Margaret, and their family and friends.”
Comment | The markets have spoken – and it is they, not the prime minister, that saved Rachel Reeves
Thursday 3 July 2025 16:59 , Jabed AhmedRead the full Voices peice from The Independent’s chief business commentator James Moore below:
The markets have spoken – and it is they, not the PM, that saved Rachel Reeves
Recap | Reeves appears in public after teary PMQs
Thursday 3 July 2025 16:46 , Jabed Ahmed- Rachel Reeves confirmed she was “clearly” upset during Prime Minister’s Questions on Wednesday, but said it was due to a “personal issue” and she would not go into detail.
- She rejected suggestions that her tears were linked to a conversation with the Speaker or any government colleague, saying: “Today’s a new day and I’m just cracking on with the job.”
- Reeves returned to work with a smile at the launch of the Government’s 10-year NHS plan, where she delivered a speech alongside the Prime Minister and Health Secretary.
- Sir Keir Starmer praised Reeves at the event, hugging her on stage and crediting her decisions with enabling “record investment in the NHS”. He said she would remain Chancellor beyond the next election.
- When asked again about her emotional moment, Reeves declined to answer. Starmer said he hadn’t realised she was upset at the time due to the rapid pace of PMQs.
- At the NHS plan launch, Reeves spoke confidently, declared the plan was good for the country’s health and finances, and took selfies with nurses and NHS staff.
- UK markets stabilised following comments from Starmer reaffirming his support for Reeves and her commitment to fiscal discipline, after concerns were sparked by the welfare U-turn and her emotional display.
- In the Commons, Leader of the House Lucy Powell defended her “friend” Rachel Reeves and praised her dignity.
- Conservative figures including Claire Coutinho and Kemi Badenoch criticised the public show of emotion, suggesting it was incompatible with the demands of top leadership roles.
Key points from the NHS 10-year plan
Thursday 3 July 2025 16:27 , Jabed AhmedNHS app upgrades: By 2028, the app will serve as a “full front door to the NHS”, using AI to assess symptoms, suggest care options, and book remote or in-person appointments. A new “My NHS GP” section will guide users more effectively.
Personalised records: A single digital patient record will combine clinical history and tailored health advice, supporting better long-term care.
Patient choice: Through “My Choices”, users can compare providers based on outcomes, reviews, location, and clinical team data.
Wearable tech rollout: By 2035, wearables will be standard for preventative and chronic care, with free devices in deprived areas.
AI in primary care: Tools like “My Consult”, “My Medicines”, and “My Vaccines” will manage appointments, prescriptions, and jabs. AI will also automate GP admin, helping end the 8am appointment scramble.
Expanded access: Parents and carers can use the app’s “My Children” and “My Carer” features to manage care for loved ones.
Community-first care: Funding will shift away from hospitals towards local care, with fewer outpatient departments and more automation in booking systems.
New services: 85 mental health emergency departments will be set up, and lung cancer screening will expand nationwide.
Prevention push: A major anti-obesity “moonshot” includes junk food ad restrictions, energy drink bans for under-16s, clearer alcohol labelling, and food industry regulation.
Dental reform: Dentists may be required to serve three years in the NHS if trained with public funds.
Performance focus: 95% of patients should receive routine care within 18 weeks. Managers will have stronger powers to reward top performers and address underperformance.
Workforce reform: Priority will go to UK-trained medical staff, with international recruitment reduced to under 10% by 2035.
Analysis | Rachel Reeves’s brave face cannot mask the challenges she now faces
Thursday 3 July 2025 15:57 , Jabed AhmedOur political correspondent Archie Mitchell writes:
If there were any doubts about Sir Keir Starmer’s plans for Rachel Reeves, the prime minister and his chancellor have gone all out to try and put them to bed.
A day after she sat crying through Prime Minister’s Questions on live television, the chancellor sat smiling and cheering through the prime minister’s speech outlining a 10-year plan for the NHS.
For his part, Sir Keir shouted “wahey” as Ms Reeves got to her speech to lay the financial framework for the plan.
Read the full analysis below:
Reeves’s brave face cannot mask the challenges she now faces
Can Labour survive its identity crisis? Ask chief political commentator John Rentoul anything
Thursday 3 July 2025 15:29Labour’s internal rift has burst into full view. Sir Keir Starmer’s push on welfare reform has sparked open rebellion—from both loyalists and Corbynites – exposing the party’s deepest tensions.
The flashpoint? Disability benefits. The fallout? Starmer’s authority dented, his party divided. Only Angela Rayner seems to have gained ground, fuelling fresh leadership speculation.
So, can Labour survive this identity crisis—or is the party tearing itself apart?
Join The Independent’s chief political commentator John Rentoul live at 2pm BST, Friday 4 July for a no-holds-barred Q&A on Labour’s future, Starmer’s struggles, and what’s next for the opposition.
Ask your question or follow along here.
Watch | Reeves says she was 'clearly upset' at PMQs and reasserts it was 'a personal issue'
Thursday 3 July 2025 14:59 , Jabed AhmedWhich tax rises could Rachel Reeves introduce to pay for the £5bn welfare U-turn?
Thursday 3 July 2025 14:38 , Jabed AhmedOur Political Correspondent Millie Cooke takes a look below:
Which tax rises could Rachel Reeves introduce to pay for the £5bn welfare U-turn?
Hunt welcomes NHS plan
Thursday 3 July 2025 14:32 , Athena StavrouFormer Tory health secretary Sir Jeremy Hunt has welcomed the Labour government’s NHS 10-year plan.
Sir Jeremy said: “There is much to welcome in today’s plan, particularly bringing back family doctors, which is something that I tried – and frankly did not succeed – in doing when I was doing his role, so we all wish him well.”
He emphasised that the Care Quality Commission (CQC) must maintain its overall rating system to avoid another Mid Staffs scandal, in which hundreds of patients died as a result of poor care at Stafford Hospital between 2005 and 2009.
Responding, Health Secretary Wes Streeting said: “I strongly agree with my predecessor on that, it’s really important when CQC makes reports and judgments that they can be understood by the public and understood by the people responsible for carrying out the improvements that they recommend.
“And via the NHS app, we’ll have much more transparency for patients about the range of providers, the quality of services, the views of other patients, to give patients the freedom to choose where they’re treated, when they’re treated and in a more data-driven way, as well as the importance of face to face inspections by experts in a data-driven way, we can have the early warning systems that would alert people who’ve held his office and mine that something is going seriously wrong, and we can intervene before more lives are lost unnecessarily.”
Tories say NHS plan’s goals are right but details still ‘sketchy’
Thursday 3 July 2025 14:18 , Jabed AhmedWes Streeting’s “long-term goals are right”, the Conservative shadow health secretary has said as he warned the overall 10-year plan “is still sketchy on some of the details of delivery”.
Edward Argar told the Commons: “I’m pleased to see this plan published. This Secretary of State is a rare thing these days, he’s a Secretary of State whose announcements do tend to survive largely in tact for more than a week.
“And in the case of this plan, it’s vital that it does stick. Now, the Secretary of State is not known to be short on ambition and to be fair, this is reflected in his plan today.
“It is ambitious, I believe his long-term goals are right and that the reforms he sets out today build on the reforms we set out and carried out. The desire to shift care from hospital to community, to better use technology and to move to prevention are not new at all, but they remain vital.
“Now, the NHS undoubtedly needs reform not just more cash – 38% of day-to-day Government spending going on the NHS is simply not fiscally sustainable in the long-term – we need to focus on outcomes, not just inputs.
“But this plan, while welcome, is still sketchy on some of the details of delivery and how it will be paid for without the funds he’s mentioned being eaten by pay rises and by inflation, and actually, how the shift will be staffed.”
Annoyed Clacton resident tells Farage he’s ignoring town - before Reform leader forgets his name
Thursday 3 July 2025 13:59 , Jabed Ahmed
