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Starmer humiliated as welfare vote passes after yet another U-turn – London Business News | London Wallet

Philip Roth by Philip Roth
July 2, 2025
in UK
Starmer humiliated as welfare vote passes after yet another U-turn – London Business News | London Wallet
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Sir Keir Starmer’s position as Prime Minister could be in tatters after Labour rebels forced the government into yet another U-turn.

At the eleventh hour Starmer’s plans on welfare reforms to restrict eligibility for personal independence payments (pip) were shelved following the rebellion.

Starmer’s climbdown was enough to scrap through with a vote in the House of Commons and the bill has been describes as a “complete farce” by one Labour MP.

Following Starmer’s U-turn on the welfare reforms the Chancellor’s hope of billions of savings is now scrubbed.

Rachel Reeves is now under threat as the Conservatives are now on scent to go after the Chnacellor.

The Shadow Chancellor Mel Stride has written to Reeves asking her what her plans are to fin £7.25 billion that the government wants to spend.

Stride has said that Reeve’s policies as left a “black hole” and has asked if taxes will now go up as a result of Starmer’s humiliating defeat to make up the difference.

Stride wrote on social media, “Labour are making unfunded u-turns which will cost bililons.

“Before yesterday’s welfare vote, I wrote to the Chancellor asking where the money will come from.

“And the u-turns are coming so thick and fast since I wrote it they’ve racked up an even bigger bill with yet another u turn.

“So what will it be @RachelReevesMP – tax rises, more borrowing or both? Labour owes the country answers.”

Sky News asked the Cabinet Office Minister Pat McFadden if the Chancellor will still in her job at the next Autumn Budget.

McFadden told the broadcaster, “Of course she will.

“She’s doing an excellent job, we take these decisions as a team, we stand as a team and we go forward as a team.”



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