'He needs to look in the mirror': Labour rebel Rachael Maskell warns Starmer that Budget flop could see PM ousted

Ms Maskell, Labour's MP for York Central, told Tonight with Andrew Marr that she thinks "if the Budget doesn’t deliver, not only the maths but the story, then people will be starting to say who is the next leader?

Alluding to rumours of a plot to oust Sir Keir as Prime Minister, she added: "We’ve heard rumblings already."

Maskell, who made headlines by leading a rebellion which saw the Government's planned welfare cuts watered down, added: "Ultimately, the Prime Minister needs to look in the mirror and say ‘Do I have the skills at this particular time in our history to lead the Labour Party?’"

When pressed by Andrew, on whether her answer from the PM’s mirror would be "No, he should not be leader", Rachael told Andrew: "I would say Andy Burnham should be looking back and saying 'I can.'"

Ms Maskell was talking to Andrew on a day where Norwich South MP Clive Lewis offered to vacate his seat in order to allow Andy Burnham, the Mayor of Greater Manchester, to rejoin the Commons and challenge Sir Keir in a leadership contest.

Of Mr Lewis's declaration, Ms Maskell said: "Clive is always after a headline and I think he has certainly achieved that today!… York Central is not on offer… But what I would say is that I think that Andy [Burnham] can articulate a story, he connects with people.

Starmer is facing issues on several fronts, with a possible backbench rebellion over Shabana Mahmood's immigration reforms.

Home Secretary Ms Mahmood's policies - which could include taking jewellery from asylum seekers to contribute to costs and the deportation of children born to refugee parents in the UK – have caused significant anger in the Labour party.

Starmer defended the plans, which have been met with alarm by many Labour MPs.

Immigration reforms is not the only part of party policy under fire - as Chancellor Rachel Reeves prepares for a difficult Budget on November 26.

On his party's tax policy, Starmer was asked by Kemi Badenoch to ‘come clean’ over whether Labour would freeze the thresholds at Prime Minister's Questions on Wednesday.

He replied: “The Budget is actually next week, but I can tell her it will be a Labour Budget with Labour values, that means we will focus on cutting NHS waiting lists, cutting debt and cutting the cost of living.”

“This is the first Budget to unravel before it’s even delivered,” Mrs Badenoch said.

“When the Chancellor made that promise to unfreeze the thresholds, it wasn’t an off-the-cuff comment.

“She said it on the floor of this House in her Budget speech. That was a deliberate statement of Government policy.

“So if she breaks such a clear promise, how can the public trust a word she says next week?” She added.

Nearly 500,000 in London and the South East face being dragged into paying the higher rate of income tax if the Chancellor extends the six-year freeze on thresholds by a further two years to 2029/30.

It is widely expected that a so-called mansion tax will be introduced in the Budget.

Hitting London and the South East hardest, it is believed the tax could be imposted on homes worth more than £2m, potentially with a one per cent levy on the value above this level of the properties.

It would leave owners of properties worth £2.5 million having to pay an extra £5,000 a year in tax, or just over £400 monthly, while a £3 million home would owe HMRC around £10,000 annually, or close to £800 a month.

Some reports suggest that Ms Reeves may even target properties worth over £1.5 million, which would mean tens of thousands more homes in London being caught by her latest tax grab.

Other Budget measures could include a more hefty bank levy, restrictions on pension salary sacrifice schemes, a new road levy for electric vehicles, and limits on a salary sacrifice scheme for cyclists to buy bikes.