Keir Starmer Faces Major Labour Resignations, Cabinet Reshuffle Crisis

Sir Keir Starmer faces mounting political challenges following a turbulent reshuffle triggered by Deputy Prime Minister Angela Rayner's resignation over a £40,000 stamp duty tax scandal, which severely undermined his government’s credibility and connection with Labour’s traditional base. Senior Labour figures, including Emily Thornberry and Andy Burnham, have warned Starmer to avoid further mistakes as Reform UK gains ground, emphasizing the need for a more inclusive and less factional party approach ahead of a crucial election. The reshuffle itself sparked controversy, notably with the quick reinstatement of Ian Murray to ministerial roles after being sacked, reflecting internal party tensions and dissatisfaction. Meanwhile, Starmer’s government is also grappling with setbacks in economic leadership, with investment minister Baroness Poppy Gustafsson reportedly set to resign amid criticism over Labour’s approach to wealth creators and international investors. The cumulative effect of these events threatens to derail Starmer's plans for “phase two” of his government, which aimed to focus on economic growth, secure borders, and NHS improvement. Political commentators highlight that the loss of Rayner’s working-class appeal and the ethical scandal severely damage Labour’s standing, complicating Starmer’s efforts to present a united and effective leadership ahead of what is described as the party’s biggest electoral fight yet.