Westminster has been plunged into political turmoil as Health Secretary Wes Streeting openly celebrated Chancellor Rachel Reeves' dramatic income tax U-turn, branding it the 'most chaotic Budget ever' in a stunning public display of internal dissent.
Government Infighting Exposed
The extraordinary intervention comes amid growing speculation about Prime Minister Keir Starmer's position, with Labour insiders reportedly 'in despair' about shambolic briefing operations ahead of the critical financial package. Sources indicate the blame is being cast on Treasury minister Torsten Bell and No10 chief of staff Morgan McSweeney for the disastrous communications strategy.
Streeting's public declaration that he had not supported the controversial income tax move appears emboldened by what insiders describe as a botched Downing Street 'hit job' on his leadership ambitions earlier this week. The Health Secretary's calculated distancing from the Chancellor's position threatens to expose deep divisions within the Labour government.
Market Reaction and Economic Fallout
The political instability has already triggered significant economic consequences, with the Pound taking a hit following the overnight U-turn announcement. Interest rates on government gilts - the primary method of state borrowing - spiked significantly during early trading, although they eased back slightly after the Treasury issued an emergency statement.
The Treasury's hastily released communication stressed the Chancellor's determination to shore up public finances, but failed to calm nerves among City traders concerned about the government's economic competence. The timing couldn't be worse, with the full Budget details due to be unveiled imminently.
Broader Implications for Starmer's Leadership
The public airing of Cabinet disagreements raises serious questions about Keir Starmer's authority and control over his ministerial team. With Streeting increasingly positioning himself as a potential leadership alternative, the Prime Minister faces the dual challenge of managing both the Budget fallout and simmering leadership speculation.
Labour MPs are understood to be deeply concerned about the damage being done to the government's credibility, particularly given the critical nature of the upcoming Budget announcement. The sense of growing chaos around the looming financial package has created an atmosphere of crisis in Whitehall, with civil servants reportedly scrambling to contain the political damage.
The situation represents a significant test for Starmer's premiership, with his ability to maintain Cabinet discipline and present a united front now under intense scrutiny from both opposition parties and financial markets.
