Overview
- Downing Street allies accused Wes Streeting of plotting to oust Keir Starmer, a move that backfired, prompted an apology, and left the health secretary publicly denying any coup.
- Senior aides, notably chief of staff Morgan McSweeney, are being blamed by MPs for the briefing operation, with some calling for his removal.
- Chancellor Rachel Reeves dropped a widely trailed income tax rise after revised OBR figures and internal opposition over breaking a manifesto pledge.
- The reversal unnerved markets, with government borrowing costs rising and sterling weakening as investors questioned the government’s fiscal credibility.
- Leadership speculation has intensified, with MPs discussing possible moves after the Budget or before May’s elections and warning of electoral losses if direction is not restored.