“To duck out of giving the Spring Statement, a key Treasury responsibility is a dereliction of duty. This is the sign of a dying government and a Chancellor on her way out.”
Rachel Reeves is facing fresh turbulence inside Whitehall, with reports suggesting officials have explored whether a junior minister could deliver the upcoming Spring Statement in an effort to avoid unsettling the financial markets.
Discussions are said to have taken place within the Treasury about how to frame the fiscal update, due on March 3, with senior civil servants keen to portray it as a “non-event”.
Some officials reportedly believe removing the Chancellor from the spotlight would underline its limited scope, though others acknowledge that such a move would inevitably prompt speculation about her authority and prospects in a mooted Cabinet reshuffle.
Concerns stem from the fraught build up to last autumn’s Budget, when leaks and shifting signals on tax and spending policy contributed to market volatility and public anxiety.
A Whitehall source told The Telegraph: “We don’t want the levels of speculation and market instability that we had in the run up to the Budget.”
They added that there would be no new tax and spending measures and that Ms Reeves intended to make only limited media appearances before the statement.
Westminster observers say the notion of delegating the announcement could also be interpreted as an attempt to head off pressure from Labour backbenchers for greater borrowing, demands that have previously unsettled investors.
Renewed focus on Ms Reeves follows reports last month that she felt “sidelined” after being removed from Keir Starmer’s visit to China, despite earlier expectations that she would attend after pushing for closer trade relations with Beijing.
In what was described as a “political” decision, she was replaced shortly before the trip by Lucy Rigby, a junior Treasury minister.
Critics argue the episode reinforced perceptions of disorder around Labour’s economic leadership, impressions that were already formed during the volatile weeks ahead of the autumn Budget.
That period saw pensioners rush to withdraw savings after media reports suggested the Government was preparing to raise taxes on withdrawals, proposals that were later dropped.
In an unusual pre Budget speech on Nov 4 2025, Ms Reeves indicated she was contemplating breaking Labour’s pledge not to increase income tax, saying everyone “will have to contribute” to improve Britain’s finances.
She attributed the country’s difficulties to global factors such as tariffs and “volatile” supply chains, as well as Liz Truss’s mini Budget in 2022. Days later, however, the Financial Times reported that the income tax rise had been abandoned.
The reversal drew sharp criticism from Dame Meg Hillier, chair of the Treasury select committee, who said the Chancellor had thrown “several grenades onto the pitch” during the Budget run up. She labelled the retreat on income tax a “glaring error” that contributed to turmoil and “left everyone either confused or annoyed”.
Further controversy followed when Richard Hughes stepped down as head of the Office for Budget Responsibility after the watchdog released details of several measures ahead of schedule, then accused the Government of briefing out “misconceptions” about a supposed hole in the public finances.
Ms Reeves was later accused by opponents of misrepresenting the state of the economy to justify what they characterised as a £30bn tax raid.
Dame Meg said it was ultimately the Chancellor’s responsibility to prevent a repeat of that year’s Budget process.
When questioned by MPs in December, Ms Reeves said the Financial Times article about dropping income tax rises had not come from an “authorised briefing”. She described the situation as “incredibly damaging and frustrating” and said it had triggered a leak inquiry.
Opposition figures have sought to capitalise on the latest reports. Shadow minister Priti Patel said: “To hold the responsibility of a great Office of State is an enormous privilege.
To duck out of giving the Spring Statement, a key Treasury responsibility is a dereliction of duty.
This is the sign of a dying government and a Chancellor on her way out.”
The Treasury have been asked for comment.
