REEVES NOW 'CHANCELLOR IN NAME ONLY'

PM appoints his own economic adviser and forms Budget board

- By Jonathan Walker and David Williamson

RACHEL Reeves has been branded a “Chancellor in name only”, with Sir Keir Starmer creating his own economic team in Number 10 to try to end the chaos threatening his premiership.

Labour insiders say the Prime Minister has “lost confidence” in Ms Reeves but cannot sack her after vowing she would be Chancellor “for a very long time to come”. They fear the party is heading towards disaster in next year's Scottish, Welsh and local elections - with voters still appalled by the Chancellor scrapping winter fuel payments for millions of pensioners last year.

A Labour MP claimed the situation is so serious Sir Keir could be gone by the end of the year, saying: "I think Starmer is on the brink. It's very, very serious. He's one more mistake away from having to go. I think he is in the danger zone.

"The only hope of holding on to Wales or regaining power in Scotland is by changing him. He is that much of an electoral liability."

The Government is reeling from the resignation of Deputy PM Angela Rayner and the sacking of Lord Mandelson as US ambassador.

Confidence in the PM took another blow when it emerged Downing Street officials were aware of supportive emails between Lord Mandelson and paedophile Jeffrey Epstein when Sir Keir defended the peer during PMQs.

He is understood not to have known about the

'He's in panic mode and has sidelined her'