Starmer's Temporary Reprieve Despite Budget Disappointment
Senior Labour figures have confirmed that Sir Keir Starmer's position as party leader remains secure until at least the May local elections, despite widespread recognition that last week's budget failed to address the fundamental challenges facing the party. More than a dozen previously loyal MPs have expressed concerns that the financial measures announced by Chancellor Rachel Reeves would not significantly improve Labour's chances against a resurgent Reform UK.
One minister bluntly stated that the budget merely "delays what is inevitable," capturing the mood of many on the Labour benches who believe the party's underlying problems remain unresolved.
Post-Budget Peace Offering and Leadership Maneuvering
In the Commons following the budget announcement, senior cabinet members engaged in what insiders described as a "tacit declaration of peace" after a week of intense briefing against Wes Streeting's perceived leadership ambitions. Health Secretary and the Prime Minister's chief of staff, Morgan McSweeney, were among those making conciliatory gestures towards backbenchers.
Those close to Starmer vehemently denied suggestions the leader would have considered stepping down if the budget had been poorly received. A senior Number 10 source dismissed such speculation as "nonsense," insisting Starmer remained firmly committed to leading the party through its current challenges.
The budget period saw MPs subjected to what several described as "love bombing" tactics, with Rachel Reeves conducting individual meetings with over 100 parliamentarians and personally name-checking many during her budget speech. "Everyone is getting photo ops and invites to Chequers," noted one MP, though they added the fundamental vulnerabilities remained: "The budget doesn't change the fundamentals that they are one crap decision away from catastrophe."
Growing Concerns and May Election Perils
MPs from the party's right expressed particular unease about the budget's direction, with one criticising its apparent focus on "the bond markets and the backbenches" rather than addressing the financial pressures facing ordinary voters. The welfare U-turn and maintained two-child benefit cap were highlighted as measures that would squeeze household incomes considerably.
One senior Labour figure described the budget as merely a "tactical victory" that failed to address the unfavourable political and economic trends. They noted the absence of "a wider economic or political story that gives you any idea where we're going or what this is for, beyond survival."
Attention is now turning to the May local elections, which Downing Street insiders acknowledge represent a "perilous" challenge to Starmer's leadership. Discussions led by Spencer Livermore, who managed Ed Miliband's 2015 campaign, are already underway to limit expected damage. There are serious concerns that Labour could suffer significant losses across English councils, potentially lose Wales to Reform UK, and slip to third place behind the SNP and Reform in Scotland.
The strategy appears to focus on identifying isolated successes against the Greens or Reform in specific areas to construct a narrative of potential recovery, though many MPs, particularly those in Wales and Scotland, remain sceptical about this approach.
As one Scottish MP noted: "We need to make sure the contest is about who leads Scotland at Holyrood, who will transform public services here, not about what Scottish voters think about Keir, because otherwise we're stuffed."
