Tax U-Turn Leaves Starmer Weakened, MPs Warn
Tax U-Turn Leaves Starmer Weakened, MPs Warn

Keir Starmer faces a diminished reputation after his third policy reversal in a month, as changes to the welfare bill aim to avert a Commons defeat. The prime minister's chief of staff, Morgan McSweeney, and deputy PM Angela Rayner negotiated with rebel Labour MPs to amend the bill, securing support from moderates but damaging Starmer's image as a reformer.

The welfare bill U-turn includes limiting cuts to new claimants and linking the health element of universal credit to inflation. The Resolution Foundation estimates the changes could cost £3bn, with Chancellor Rachel Reeves expected to outline funding in the autumn budget. Critics warn this sets a precedent for backbench pressure on other issues, such as the two-child benefit cap.

Health minister Stephen Kinnock defended Starmer, saying he 'runs towards' tough reforms. However, a senior Labour MP said Starmer must change his approach after 'riding roughshod' over colleagues. The prime minister also reversed course on winter fuel payments and grooming gang inquiries, admitting regrets over hiring Sue Gray and his 'island of strangers' immigration warning.

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