Rachel Reeves appeared to be in tears in the Commons as she sat next to Keir Starmer during a tense Prime Minister's Questions.
It came as the PM swerved a question over whether Ms Reeveswould still be Chancellor at the next election following a bruising day for the government on Tuesday evening where Mr Starmer suffered the biggest revolt of his premiership so far over his welfare plans.
After PMQs, the Prime Minister’s Press Secretary told reporters: “The Chancellor is going nowhere.” On Mr Starmer’s backing for Ms Reeves, they added: “He’s said it plenty of times. He doesn't need to repeat it every time the Leader of the Opposition speculates about Labour politicians.”
A spokesman for the Chancellor said: “It’s a personal matter, which - as you would expect - we are not going to get into. The Chancellor will be working out of Downing Street this afternoon.”
READ MORE: All the concessions made to Keir Starmer's welfare bill and what happens next
Ms Reeves is said to have had an "altercation" with Commons Speaker Lindsay Hoyle immediately prior to Prime Minister's Questions. A minister said they did not know what the row was about, but that "[Speaker Hoyle] ended up apologising."
Mr Starmer faced Tory leader Kemi Badenoch after being forced to scrap key planks of his welfare reforms, leaving an almost £5billion black hole in Ms Reeves' spending plans and fuelling speculation she could be forced to hike taxes.
Ms Badenoch said Ms Reeves looked "absolutely miserable", with the Chancellor seen wiping tears from her face during the debate. Labour minister Ellie Reeves appeared to be holding her sister's hand as she left the chamber.
When asked if she would stay in position, Mr Starmer dodged the question, instead saying Ms Badenoch "certainly won't".
It came as the Conservative leader said the "welfare bill was created to plug a black hole created by the Chancellor. Instead, they're creating new ones". Ms Reeves reacted from the government frontbenches, to which Ms Badenoch hit back: "She's pointing at me, she looks absolutely miserable. They can point as much as they like but the fact is Labour MPs are going on the record saying the Chancellor is 'toast' and the reality is he is a human shield for his incompetence."
She added: "In January, she said she will be in post until the next election. Will she really?"
The PM tried to make a joke saying Ms Badenoch "certainly won't", adding: "I'm always cheered up when he asks me questions or responds to a statement because she always makes a complete mess of it and shows just how unserious and irrelevant they are."
Mr Starmer listed progressive policies the Labour government was implementing, including an expansion of free school meals, breakfast clubs, £15billion invested in transport in the north and midlands, building 1.5 million homes, investing in affordable housing, and the three trade deals, including with the US and India.
Ms Badenoch hit back: “How awful for the Chancellor that he couldn’t confirm that she will stay in place." She goes on to attack Labour's first year in power and says it has simply been "a series of humiliating U-turns".
In a key vote on Tuesday evening, MPs voted by 335 to 260 - a majority of 75- to pass through the Government's welfare bill. But 49 Labour MPs voted against the government in the biggest revolt of Mr Starmer's premiership so far.
Under a U-turn announced 90 minutes before voting began, it was announced changes to restrict PIP would be delayed until after a review by DWP minister Sir Stephen Timms. Sir Stephen told MPs that the Government had listened to the concerns raised about the timing of the changes in shambolic scenes in the Commons.
The changes leave the Government's welfare reforms in tatters with any future savings uncertain as the scale of the squeeze on PIP is now unclear. The latest concession follows a partial U-turn last week in the face of a possible defeat.
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