Rachel Reeves in 'deep trouble' and could take Keir Starmer down with her

Critics argue the under-fire Chancellor has '72 hours' to save her job.

Under-fire Rachel Reeves is in "deep trouble" and the next 72 hours could be crucial to save her job and that of the Prime Minister, backbench sources claim. Downing Street has said Sir Keir Starmer was happy with a speech given by Ms Reeves on November 4, which gave the perception there was a £20 billion black hole in public finances when, in fact, it's been revealed there was a surplus.

The backing of the PM appears to be at direct odds with the Office for Budget Responsibility (OBR), which said it told the Chancellor as early as October 31 that there was no longer a shortfall in the public purse. However, just days later, Ms Reeves gave a speech in Downing Street on November 4, saying she needed to raise taxes to plug a hole in the nation's coffers.

During a round of media interviews this morning (Sunday), Ms Reeves has defended her handling of the Budget as opposition figures claimed she misled the public over the size of the fiscal "repair job" she faces. Speaking to Sky News, the Chancellor said she "of course" did not lie to the public when she set out a gloomy economic picture at the beginning of November.

And discussing the split with the OBR, Ms Reeves told Sunday Morning With Trevor Phillips that the OBR's investigation into the leak of its economic forecasts ahead of the Budget is expected to report to her on Monday. She added: "We will get a report tomorrow, the report that looks at what happened about that Budget leak. It was clearly serious. It was clearly a serious breach of the protocol, but I'll see that report tomorrow."

She added that she had "a huge amount of respect" for the OBR and its chairman, Richard Hughes, but stopped short of backing him to stay in his role.

But Conservative leader Kemi Badenoch put the blame squarely at the Chancellor's feet today (Sunday), appearing on the BBC's Sunday With Laura Kuenssberg programme. She said Ms Reeves was "raising taxes to pay for welfare" in the Budget and "should resign", adding: "I don't care whether people misbehave at the despatch box. What I care about is whether or not I'm doing a good job. She should care about whether or not she's doing a good job - she's doing a terrible job.

Previously, Ms Badenoch had the revelation from the OBR showed Ms Reeves had "lied to the public" and should be sacked.

Speaking to the Telegraph, one Labour backbencher said: "We're managing decline where people are crying out for real change. This is the worst Labour Government in recorded history. The Chancellor is in deep trouble."

Another added that it was "hard to see how they come back from it" when referring to the political position of both Sir Keir and Ms Reeves.

The next few days will be crucial for the Chancellor after details of her November 26 Budget were mistakenly released to the public almost an hour early when official forecasts from the OBR were uploaded to the watchdog's website. The OBR apologised for the leak and immediately launched an investigation, with expert input from Professor Ciaran Martin, former head of the National Cyber Security Centre (NCSC).

Despite Prof Martin's involvement, the OBR has said there is no reason to suspect a cyber attack.

Last week, OBR Chairman Mr Hughes said he had been "mortified" by the leak and told an event hosted by the Resolution Foundation that he would resign if he lost the confidence of the Chancellor and the Commons Treasury Committee.