Chancellor Rachel Reeves abandoned a planned increase to income tax after significant opposition from Labour MPs and concerns about the political fallout. This U-turn, intended to raise billions, has damaged her authority and left the government needing to find alternative revenue streams. The decision followed a period of intense internal political maneuvering within the Labour party, with reports of a potential leadership challenge against Sir Keir Starmer. Health Secretary Wes Streeting publicly denied involvement in coup plotting, accusing Downing Street insiders of damaging tactics. This internal chaos, combined with the Budget reversal, has weakened Starmer's leadership and eroded trust in the government, with further challenges expected from upcoming local and parliamentary elections.
