Keir Starmer’s allies warn rebels against triggering a leadership coup after the upcoming budget

Downing Street has descended into crisis mode as fears grow that Prime Minister Keir Starmer could face a leadership challenge in the aftermath of next week’s budget or following heavy defeats at the May local elections.

Senior aides to Starmer have warned that any move to unseat him would be “reckless” and “dangerous,” arguing it would destabilise both the markets and the Labour Party itself. They insist the prime minister will fight to stay in power if challenged, refusing to bow out quietly.

The alarm was triggered by growing rumours that Health Secretary Wes Streeting was preparing to move against the prime minister, claims he strongly denies. Sources inside No 10 said they had been told Streeting had the backing of as many as 50 frontbenchers willing to resign if the budget fails to land well and Starmer refuses to step aside.

While the accuracy of those reports remains unproven, the speculation has clearly rattled Downing Street. Senior insiders admit the mood has turned defensive and paranoid. “No 10 has gone into full bunker mode,” one said. “They’re turning on their own and attacking loyal cabinet members for no reason. It’s chaos.”

Cabinet sources believe Streeting is just one of several figures “on manoeuvres” as potential successors should the prime minister’s position collapse. Others said to be preparing for possible bids include Angela Rayner, Shabana Mahmood and even former leader Ed Miliband.

No 10’s sudden warnings to MPs are being seen as part of a “Stop Wes” campaign to discourage rivals from moving too soon. “Keir won’t step aside for Wes or anyone else,” said one senior ally. “He won’t quit because of one bad budget or a few bad headlines. He’s in this to the end.”

Those closest to Starmer insist that forcing a leadership battle just 18 months into Labour’s time in government would be catastrophic. “If MPs throw the party into turmoil now, they’ll crash the markets, alarm our allies and shatter public trust,” one adviser said. “It would take a generation to recover.”

But concern within Labour is growing. Poll ratings have slumped sharply, and some MPs fear that Starmer’s cautious economic strategy and broken pledges on tax and welfare have left voters disillusioned. There are also growing doubts over whether he can deliver the radical change he promised or secure a second term in office.

A senior Downing Street figure warned MPs against panic. “Lots of people are nervous, but this talk of a coup is madness,” they said. “We haven’t even finished our first phase of reforms. The public would never forgive us for tearing ourselves apart.”

An ally of Wes Streeting rejected claims that he was plotting, calling the rumours “a paranoid fantasy from a panicking No 10.” They said his focus remains on cutting NHS waiting lists, recruiting new doctors and rebuilding the health service. But they admitted that many in Westminster expect turbulence if Labour performs badly in the May elections.

Streeting has increasingly become a vocal critic of Starmer’s policies, publicly questioning the government’s stance on welfare, digital identity cards and the Gaza conflict. Once seen as a right-leaning moderniser, he has recently positioned himself as a more assertive advocate for progressive change.

Meanwhile, other figures in Labour’s senior ranks are also quietly preparing for potential opportunities. Deputy leader Angela Rayner and Greater Manchester mayor Andy Burnham are both being talked about as future contenders, though neither is believed to be actively plotting a move.

For now, Starmer’s inner circle is determined to project unity. “He knows the knives are out,” one senior ally said, “but he believes the only way through is to stay calm, deliver a strong budget, and prove he’s still the leader the country needs.”

Despite the warnings, whispers of dissent continue to grow across Westminster’s corridors. Whether those murmurs turn into an open rebellion may depend entirely on what happens when the chancellor steps up to deliver the budget next week.