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Starmer Plots Cabinet Overhaul to Save Leadership – London Business News | London Wallet

Philip Roth by Philip Roth
March 23, 2026
in UK
Starmer Plots Cabinet Overhaul to Save Leadership – London Business News | London Wallet
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It is believed that Keir Starmer is preparing for a significant Cabinet reshuffle in a last-ditch effort to salvage his troubled leadership, amid concerns that Labour may face an electoral collapse within weeks.

Senior insiders indicate that the Prime Minister is considering reinstating Angela Rayner and former Transport Secretary Louise Haigh, both of whom left government under difficult circumstances, as part of a comprehensive overhaul to reassert control, GB News reported.

This reshuffle could come at the expense of some of the party’s most senior figures, with Rachel Reeves and Wes Streeting reported to be at risk of being dismissed.

The proposed changes signal a clear shift to the Left, which could have substantial implications for economic policy. “A shift to the Left means a change in economic policy, which means a new chancellor,” one source explained.

Haigh resigned after it was revealed that she had a prior conviction for falsely reporting her mobile phone as stolen, while Rayner’s return depends on the outcome of an HMRC investigation into unpaid stamp duty on a Brighton property. Allies believe the inquiry could conclude before the local elections in May.

Meanwhile, Lucy Powell is reportedly seeking a senior Cabinet role following her recent ascent within the party. If Reeves is removed, two potential successors have emerged: Torsten Bell, a former economist at the Resolution Foundation, and Darren Jones, the current Chancellor of the Duchy of Lancaster.

The anticipated reshuffle highlights the deepening turmoil within Labour, with internal disputes and backbench unrest eroding the Prime Minister’s authority. Polling projections suggest the party could lose as many as 1,700 council seats in the upcoming local elections, with Reform UK and the Greens poised to make significant gains, GB News reported.

The mood among Labour MPs has become increasingly bleak, with fears of substantial losses in traditional strongholds across the North, Wales, Scotland, and London.

The pressure has escalated, with Sharon Graham warning that the party risks being “decimated” at the polls and hinting at a potential leadership challenge. “I don’t think they understand how bad the situation will be,” she said.

Downing Street is also reportedly struggling to attract senior staff, raising further doubts about the Prime Minister’s ability to implement a necessary reset. “Nobody thinks he will survive much beyond May,” one insider commented.

Even if the reshuffle takes place, many in Westminster believe it may be too little, too late to secure Sir Keir’s grip on power.

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