Panic for Keir Starmer as No 10 desperately tries to save PM from plot to oust him

Sir Keir Starmer's No 10 allies have launched a campaign to save the Prime Minister's job amid fears he could be forced out after the tax-raising Budget or election defeats next May. Downing Street has been thrown into panic by the backlash to tax increases due later this month, even though they have not yet been formally announced by Chancellor Rachel Reeves.

And Labour fears losses in the Scottish and Welsh parliamentary elections. It could also lose control of Birmingham, the largest local authority in the UK, in local elections. There is particular concern in Downing Street that Health Secretary Wes Streeting is poised to take over as leader if Sir Keir is forced to quit, although Mr Streeting has staunchly denied being part of any plot.

Allies of the Prime Minister are arguing that forcing him out would be a "reckless" and "dangerous" move that would hurt the public finances and push up the cost of borrowing, as well as damage the UK's relationship with allies such as the US.

But the briefing from No 10 sparked a furious response. A Labour source within Government said: "No 10 has gone into full bunker mode, turning on their most loyal Cabinet members for absolutely no reason."

Highlighting previous attacks on ex-deputy leader Angela Rayner, Culture Secretary Lisa Nandy and Deputy Leader Lucy Powell, the source said: "Unfortunately, there is a pattern of Keir's team briefing against his own people - they did it to Angela, Lisa, Lucy, now it's Wes's turn. A circular firing squad won't help the Government out of the hole we're in."

The turmoil in No 10 was revealed by The Guardian, which said Sir Keir's allies are warning he will not go quietly and would stand again in any leadership contest. This is what former Labour leader Jeremy Corbyn did in 2016, when Labour MPs succeeded in forcing a fresh leadership election in an attempt to get rid of him. The Islington North MP stood in that election and won it.

While No 10 is focused on Mr Streeting, the operation to shore up the Prime Minister's position is designed to ward off any potential rivals who could also include Ms Rayner, Home Secretary Shabana Mahmood and Environment Secretary Ed Miliband, who has been Labour leader once before.

One ally of the Prime Minister told The Guardian: "Keir will not stand aside at this point, for Wes or anybody else.

"The idea he'd walk away if somebody said the Budget hadn't landed well is nonsense," a second added. They said he was determined to fight for change for the country, despite the many difficulties.

"We have a challenging situation in the PLP [Parliamentary Labour Party]. We know everything is a bit febrile and everybody is concerned. But the consequences of a leadership challenge would be enormous, and people need to remember that," the first senior ally said.

"If you chuck a leadership challenge in just 18 months into government, you'd destabilise the markets, our allies, and I don't think the public would forgive us. The impact would be very serious. MPs need to think about the reality of what a challenge right now would mean."

And they warned: "The party would not recover for a generation."

But another source said the Prime Minister did not understand that his own MPs had lost confidence in him.

They said: "Keir doesn't realise this is existential for him. But it's astonishing that MPs think that ousting him might be an answer - the public will just think we're no different from the last lot."

A spokesperson for Mr Streeting said: "Wes's focus has entirely been on cutting waiting lists for the first time in 15 years, recruiting 2,500 more GPs, and rebuilding the NHS that saved his life."

Any suggestion that Mr Streeting was plotting against the Prime Minister was "categorically untrue," said the spokesman.