Labour’s Leadership Shake-Up Amid Economic and Popularity Woes

Keir Starmer is considering a bold restructuring of his top team to improve Labour’s slump in public support. Among the changes being discussed is the removal of Rachel Reeves from the role of Chancellor, with a proposal to shift Home Secretary Yvette Cooper into the Treasury to bolster the nation’s economic prospects. This move is part of an overall strategy to rebalance government priorities, as the current administration struggles with a severe immigration issue and an underperforming economy.

In a related shuffle, Pat McFadden, a loyalist to Starmer and current Chancellor of the Duchy of Lancaster, may be reassigned to the Home Office to help address the immigration crisis. Meanwhile, Defence Secretary John Healey is under threat of losing his portfolio due to ongoing debates over defense spending. There is also speculation about leadership changes at the Ministry of Defence, with reports suggesting that Luke Pollard might be a candidate to replace Healey, while Labour newcomer Alistair Carns, who is a former Royal Marine, is being tipped for a role in defence.

Insiders have revealed that an “active process” of reviewing all options is already underway, with the reshuffle anticipated to take place in the spring. Suggestions have been made about other potential moves, including replacing Peter Mandelson with former Foreign Secretary David Miliband at the Global Counsel role, though some officials have dismissed such speculations. The pressure on Reeves has intensified following several unpopular policy decisions, including the cancellation of a Winter Fuel Payment for pensioners and a significant 20% inheritance tax targeting farmers and family businesses.

Amid these leadership challenges, the upcoming fiscal forecast from the Office for Budget Responsibility is expected to reveal grim economic trends, which may force the Chancellor into more spending cuts—further intensifying cabinet frustrations. Despite previous assurances by Starmer of his confidence in Reeves, public opinion and internal pressures have raised questions about the future direction of his government. The current political climate is also reflected in recent polls, where Nigel Farage's Reform UK has overtaken both Labour and the Conservatives, highlighting a dramatic shift in voter sentiment and the urgency for change within the party.