Overview

• Chancellor Rachel Reeves has indicated she may implement spending cuts in March to adhere to Labour's fiscal rules as borrowing costs rise.
• Reeves defended her economic policies, attributing higher UK bond yields to global market trends rather than government decisions.
• Labour's pledge to build 1.5 million new homes faces uncertainty due to limited fiscal headroom and challenges in the housing sector.
• Internal and external criticism grows, with opposition MPs and Labour backbenchers raising concerns over potential austerity measures.
• Prime Minister Keir Starmer's hesitation to affirm Reeves's position as Chancellor has fueled speculation about tensions within the government.