Sir Keir Starmer is facing accusations of being a 'Leader in Name Only' following a dramatic internal clash over the introduction of a new mansion tax. Sources within Number 10 have revealed that the Prime Minister was allegedly 'bullied' by the Treasury into accepting the controversial property levy for the upcoming Budget.
A Clash at the Top
According to a senior source who spoke to the Mail on Sunday, the Prime Minister was personally opposed to the measure. Sir Keir Starmer argued privately that a mansion tax would be deeply unfair to 'little old ladies' living in large homes that have appreciated in value over decades. He expressed concern that these homeowners, often asset-rich but cash-poor, would lack the disposable income to pay the new charge and could potentially be forced from their homes.
Furthermore, the PM reportedly believed the policy would generate significant negative headlines for the government while raising a relatively small amount of money, making it politically troublesome for limited fiscal gain.
The Treasury's Insistence
Despite the Prime Minister's reservations, the Treasury, under Chancellor Rachel Reeves, is understood to have been adamant. Torsten Bell, the Treasury Minister effectively writing the Budget, is reported to have argued forcefully that 'some form of mansion tax has to happen'.
The policy, which would impose charges on homes worth £2 million or more, is seen as a crucial tool to appease the Left-wing of the Labour Party. It is intended to act as a 'distraction tactic', helping to frame the November 26 Budget as an attack on the wealthy rather than a set of measures that would negatively impact 'working people'.
Political Fallout and Public Opinion
The internal dispute has led to damaging claims about Sir Keir's authority. A Number 10 source stated plainly that 'Keir has basically been bullied into agreeing' to the tax. This narrative of a weakened leader, conceding to his own ministers, threatens to undermine his political standing.
This controversy emerges against a backdrop of public concern about the direction of the country under his leadership. In a recent poll conducted by the Mail, an overwhelming majority of readers expressed a pessimistic view. When asked if they agreed that 'Starmer's Britain is divided and culture is changing too fast', 99% of the more than 34,000 respondents answered 'yes'.
The impending Budget on November 26 will now be a critical test for the Prime Minister, showcasing whether he can assert his authority or if the Treasury's vision will dominate the government's economic policy.