Chancellor Rachel Reeves has dismissed speculation of a leadership challenge against Prime Minister Keir Starmer, calling it a 'stupid idea' during an appearance at the World Economic Forum in Davos.
Speaking to Bloomberg TV, Reeves rejected investor concerns about a potential shift to the left, saying: 'Keir won a massive majority. The Parliamentary Labour Party, the Cabinet, want the PM to succeed. Even if someone did have the stupid idea of challenging the Prime Minister it is incredibly difficult to do so.'
Her comments come as Labour faces a series of challenging local elections in May. Before last year's Budget, internal tensions surfaced amid fears of a poor electoral performance, but Starmer insisted he would lead the party into the next election.
Reeves also took aim at Nigel Farage, who is also attending the Davos summit, describing him as 'very bad news' for the economy. She noted his limited parliamentary presence and argued that the government's economic plan is already yielding results, with falling inflation and strong growth.
Separately, former Deputy Prime Minister Angela Rayner urged the government to cap ground rents for leaseholders, a manifesto pledge. In a Guardian article, she warned that failure to address the issue could erode public trust in Labour's ability to deliver change.
