Prime Minister Keir Starmer is reportedly considering a major cabinet reshuffle that could see Chancellor Rachel Reeves removed from her post as Labour struggles with declining public support.
Insiders say Starmer is weighing up a plan to shift Home Secretary Yvette Cooper to the Treasury, with Pat McFadden, a close Starmer ally, taking over as Home Secretary to address growing concerns over immigration, the Daily Express reported.
Defence Secretary John Healey is also said to be at risk of losing his job due to ongoing disputes over defence spending.
Speculation points to Luke Pollard or former Royal Marine Alistair Carns as potential replacements at the Ministry of Defence. Insiders claim an “active process” is underway, with changes expected in the spring.
“There is no doubt that the first six months have been pretty rough, and the poll ratings show that,” a Whitehall source said. “Something needs to change.”
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Ms Reeves, meanwhile, has faced mounting criticism over her economic policies, including the scrapping of the Winter Fuel Payment for pensioners and inheritance tax changes affecting farmers and small businesses.
Businesses are also furious following her hike in national insurance contributions for employers. The upcoming fiscal forecast from the Office for Budget Responsibility on March 26 is expected to add further pressure on the Chancellor.
Despite the speculation, Downing Street has publicly insisted that Reeves will remain in post, with Starmer’s spokesperson reaffirming that she has his “full confidence” and will stay in office for the duration of this parliament.
However, Labour’s economic strategy and handling of immigration remain key issues that could shape the next phase of PrimeN Minister Starmer’s leadership.