A self-inflicted row about Keir Starmer’s leadership and a Budget U-turn led to a series of uncomfortable headlines for the Government as it struggles to get on the front foot
It’s been a torrid week for the Government.
A self-inflicted row about Keir Starmer’s leadership spectacularly backfired, putting Westminster gossip about the Prime Minister’s position at the top of the news agenda.
Once again the Downing Street operation – and the PM’s chief of staff Morgan McSweeney – have been in forced into an unforgiving spotlight.
As if that wasn’t enough, a leak about Rachel Reeves’s Budget plans triggered a surge in borrowing costs and a fall in the value of the pound before Treasury insiders briefed that forecasts had been less gloomy than expected.
Labour MPs, jittery about lagging poll ratings, were dismayed by the mudslinging which erupted after a late-night briefing war, largely against Health Secretary Wes Streeting, who was accused of plotting a coup.
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Harriet Harman, echoing the thoughts of many MPs, told the Electoral Dysfunction podcast yesterday: “If the intention was strength Keir and weaken Wes, it has had exactly the opposite effect.”
The Health Secretary’s handling of a hospital pass of a media round the next day – where he joked those briefing against him had been watching too much Celebrity Traitors – was well received. And advertising the PM’s weakness is unlikely to have done him any favours.
Instead, some MPs have been left frustrated by what they see as a distraction from the real battle with Nigel Farage’s Reform.
After the Government allowed Reform to set the agenda over the summer, Mr Starmer won plaudits with his MPs with a punchy Labour conference speech vowing to take them on.
But one Labour MP told us: “Keir Starmer took the fight to Reform in his conference speech and since then we’ve just seen fighting within the Labour Party.”
Of the speech, another said: “It was a powerful moment. I almost had a tear in my eye. It was the Labour Party wearing its heart on its sleeve. All of this is a distraction.”
A third MP said: “There is real frustration, as neither Wes or Keir are really offering an alternative vision that can restore confidence so it has all seemed incredibly self-indulgent at a time when there should be laser focus on getting the Budget in the best shape possible.
“They are fighting for themselves when they should be fighting for people in our communities.”
Mr Starmer, who hates briefing against his ministers, was clearly livid and sought to draw a line under the row by apologising to Mr Streeting and saying at PMQs that it was “completely unacceptable”.
No10 insisted that the briefings against the Health Secretary did not come from the team but suspicions remain.
One left-wing Labour MP said: “The majority opinion is that paid officials in No 10 briefed against a senior cabinet minister (Mr Streeting).”
The dust had barely settled when the spotlight shifted to the Treasury as a report emerged that the Chancellor had abandoned widely-suspected plans to hike income tax in the Budget.
Amid market jitters, Treasury insiders briefed that the forecasts were better than expected so the Chancellor did not need to break a manifesto commitment.
One MP said they were delighted to see the manifesto commitment retained. “There are a suite of revenue raising alternatives that are progressive, pro-growth and don’t involve breaking our manifesto commitments,” they said.
But the move sparked a fresh wave of uncertainty ahead of a Budget that could be make-or-break for the Chancellor – and the Government.