Announcing plans to ramp up investment in the use of artificial intelligence (AI) across the public sector and the UK to drive growth, Sir Keir Starmer defended the Chancellor’s tax and economic policies.

This followed a torrid week with concerns in the City about the government’s borrowing plans, soaring interest rates for government debt, a fall in sterling to £1.21 against the dollar and criticism of Reeves’ visit to China. There is also continued disquiet across business about punitive tax increases announced at the Budget, which will see employer national insurance contributions (NICs) hiked to 15% and an above inflation 6.7% increase in the national minimum wage from April.

Starmer swatted off questions about the effectiveness of the Chancellor, and whether he had confidence in the job she was doing at the Treasury, steering the economy.