Keir Starmer has learnt nothing from the benefits row ...Middle East

Last week Starmer’s authority faced its toughest test yet, and the Prime Minister has not emerged unscathed. The Government’s shambolic handling of its attempt to cut disability benefits, followed by the spectacle of the Chancellor of the Exchequer crying in the Commons, threw up a series of questions about Labour’s competence and cohesion. Many troubled Labour MPs, ministers and advisers see the fiasco as a sign of three main problems blighting Starmer’s Government. 

Rather than take bold action to reform the tax system and raise money from those most able to afford it, Reeves instead turned to the favoured option of many a former Conservative chancellor needing to stump up some cash: cuts to benefits. In doing so she put the Government on a direct collision course with many of the party’s MPs, members and voters.

Labour MPs want the Chancellor to be bolder and more radical as she prepares for the autumn Budget. Options for raising some much-needed revenue include increasing capital gains tax, making permanent the windfall tax on energy giants, changes to pension tax relief and even introducing a wealth tax. Backbenchers may have left Reeves with little choice but to increase taxes as she desperately tries to find some more money: after this week, further attempts to cut welfare spending are all but impossible. MPs are not afraid to rebel again.

Eager MPs who arrived in Westminster with ambitions of ministerial offices and the trappings of power have instead found themselves wandering forlornly around Parliament waiting to be told how to vote. Some of those elected last year recall being excited to meet the Prime Minister at Downing Street events, only for it to quickly become apparent that Starmer had no idea who they were.

As the opposition to benefit cuts grew, concerned MPs were called into Downing Street for round-table meetings with senior members of Starmer’s team. Many of them left feeling that their views had been summarily dismissed, leaving them even more determined to stick to their guns. The Government’s charm offensive with rebels was notable for its distinct lack of charm.

Still, massaging backbenchers’ bruised egos will be easier than solving the third problem that many in Labour think afflicts the Government: a lack of political foresight and judgement in both Downing Street and the Treasury.

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Even when the scale of the backlash over benefit cuts became clear, Downing Street refused to accept the Government was in trouble and was far too slow to act. One Labour insider with knowledge of the discussions says: “The whips were feeding in weeks ago that there was a problem. It was flagged that there was an issue with the numbers and the response was just “plough on”. And that was coming from people very high up in Downing Street.”

His team has struggled to foresee obvious problems, while others have been needlessly created through their own clumsiness. This is particularly true of the Treasury. As the post-mortem into the events of this week continues, more questions are being raised about Starmer’s Chief of Staff, Morgan McSweeney, than about the PM himself.

But while many would like to see Starmer’s political team beefed up, talk of major Cabinet changes is overblown: despite fevered speculation, few insiders think the Chancellor is going anywhere any time soon.

Starmer is a man who prides himself on his ability to learn from his mistakes and improve. That skill will now face its toughest test yet.

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