Haunted by the legacy of Truss and bound by the warnings of the OBR, Chancellor Rachel Reeves now faces a political and fiscal tragedy of her own, as internal rebellion and economic risks threaten her grip on stability, says Helen Thomas

OBR, OBR, wherefore art thou OBR? The three letter acronym that oversees government finances has hung over Gilt markets like Banquo’s ghost ever since they were butchered by the dagger of Lady Truss. If the OBR portends doom, the markets might take fright, forcing the government from office.

Or at least that is the story that Rachel Reeves has taken from the events of the last three years. Ever since becoming Chancellor, her every act has been to ensure the OBR determines her fiscal rules have been met, fearing if they were to rule otherwise then she herself would be made redundant. The welfare reforms tightening the criteria for Personal Independence Payments were a large part of the measures announced at the Spring Statement that ensured the OBR passed her with flying colours. Now that they’ve been removed from the gutted Welfare Bill due to a significant Labour rebellion, she’s slipped back into the red........

© City A.M.