Overview
- Government borrowing costs jumped and the pound was sold off after Chancellor Rachel Reeves abruptly dropped a planned income tax rise trailed for the 26 November Budget.
- Wes Streeting denied plotting a leadership bid, described the briefing operation as toxic and juvenile, and said he and the prime minister were extremely frustrated by the distraction.
- Keir Starmer told reporters he would act against anyone found briefing against ministers and said he had been assured the messages targeting Streeting did not originate in No 10.
- Chief of staff Morgan McSweeney has been named by some in reports as a likely source of the briefings and faces calls to go, which he denies.
- The turmoil has intensified leadership speculation, with MPs privately saying Starmer’s position has weakened and bookmakers moving Streeting up the odds, even as he publicly backs colleagues and opposes breaking manifesto tax pledges.