Allies of Streeting, who was forced to deny in November that he was plotting to oust Starmer, dismiss the claims and insist he is getting on with being health secretary. <\/p>\n
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Wes Streeting<\/p>\n
STEFAN ROUSSEAU\/PA<\/p>\n
And for now, the cabinet and backbenchers appear paralysed by the fear that any move could make a bad situation worse. And the situation is indeed bad. Instead of a rousing agenda-setting speech on the year ahead, Starmer is to begin 2026 with another reset as he tries again to sell his government\u2019s achievements.<\/p>\n
\u201cNo matter how much people dance around the subject and there is talk of yet another reset, or sacking a few people to bring new blood in, everybody knows the problem is a pretty fundamental one: the PM,\u201d a senior Labour figure said.<\/p>\n
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Sir Keir Starmer and his wife Victoria hosted a Christmas party at No 10 last month<\/p>\n
CROWN COPYRIGHT<\/p>\n
Inside No 10, the mood is one of \u201cmounting paranoia\u201d, a party insider said. They claim the recent U-turn on the inheritance tax raid on farmers<\/a> came about after a sizable group of rural MPs threatened to table an amendment to the finance bill, which only added to their growing sense of unease about the PM\u2019s future. There is also ominous chatter about the potential for a \u201cstalking horse\u201d to challenge Starmer so that none of the real contenders has to wield the knife. <\/p>\n No 10 plans to deliver two key messages as it moves towards May. It needs to convince Labour MPs to stick with Starmer \u2014 making the argument of \u201cbetter the devil you know\u201d rather than a leap into a contest without knowing who the victor will be.<\/p>\n The second message is on the cost of living crisis and is for the electorate, which No 10 wants to persuade that Labour has \u201cturned a corner\u201d with a series of policies that will put more money back in their pockets. <\/p>\n On Monday, Starmer will say his plan to restore economic stability has worked, leading to six interest rate cuts and inflation coming down. He will claim mortgage costs are at the lowest level since the mini-budget in 2022 and will highlight how millions of families will see \u00a3150 off their energy bills in April, as low-paid workers get a \u00a3900 boost from an increase in the national living wage. He will also point to frozen rail fares and prescription charges, the extension of the \u00a33 bus fare cap, and the provision of free breakfast clubs as evidence that his policies are delivering. <\/p>\n \u2022 David Smith: More of the same for the UK economy \u2014 unless we start spending<\/a><\/p>\n He will tell families: \u201cThis Labour government is on your side, doing everything we can to ease the cost of living \u2014 and make life better. In 2026 the choices we made will mean more people begin to feel that positive change. This is real change that you will be able to feel day in, day out. Britain is turning the corner and 2026 is the year more people will feel renewal becoming reality. We\u2019ll use every tool we have to help you with the cost of living and make your lives better. That\u2019s my promise to all of you.\u201d<\/p>\n In the first cabinet meeting of the year on Tuesday, he will also tell ministers to go further to tackle household finances. He will say: \u201cI know families across the country are still worried about the cost of living. There will be no let-up in our fight to make life better for them.\u201d<\/p>\n No 10 aides have been told to learn from Labour\u2019s Australian sister party. Anthony Albanese came back from behind in the polls to increase his majority in May after focusing on the cost of living. One of the key criticisms of Starmer\u2019s first year among some cabinet ministers is that policies were not being looked at through the \u201clens of the cost of living crisis\u201d \u2014 something Darren Jones, the Cabinet Office minister, has been put in charge of rectifying.<\/p>\n Some within the party are already sceptical about whether the narrative will cut through. This month, energy bills have gone up by 0.2 per cent as the price cap increased, while next month drinks will likely get pricier as alcohol duty rises by 3.66 per cent. April is also likely to be a tough month as council tax, water bills, TV licences and vehicle tax rise, and more people are also dragged into paying a higher rate of tax.<\/p>\n \u2022 Dan Neidle: We are taxing all the wrong people<\/a><\/p>\n Kemi Badenoch, the Conservative leader, said: \u201cKeir Starmer expects gratitude when we know it\u2019s his decisions that have made the cost of living worse. At the same time, working people are paying higher taxes to fund more benefits and more welfare.\u201d <\/p>\n Meanwhile, Starmer\u2019s route to May is full of distracting hazards, with backbenchers expected to flex their muscles on several fronts. On Monday, the government is likely to face questions in the Commons over its support of British-Egyptian democracy activist Alaa Abd el-Fattah after the emergence of offensive social media posts<\/a>. <\/p>\n Then there is the decision to be made over the building of a controversial Chinese mega-embassy in London. It is expected to be approved shortly before Starmer\u2019s visit to Beijing this month.<\/p>\n The prime minister\u2019s problems cross domestic portfolios. There is the proposed introduction of legislation to curb jury trials, which has been condemned by lawyers, judges and commentators.<\/p>\n
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