No 10 'in bunker mode' amid fears of leadership challenge to Starmer

"No 10 has gone into full bunker mode, turning on their most loyal cabinet members for absolutely no reason," one source said.

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"A circular firing squad won't help the government out of the hole we're in."

But their warnings were also aimed at Labour MPs jittery about breaking manifesto pledges on tax, the potential for wipeout in May and whether Starmer can deliver change - and a second election victory.

Several close allies of the prime minister told the Guardian that any move to try to oust him would be "reckless".

They said that Starmer would fight any subsequent leadership contest to see off rivals. "Keir will not stand aside at this point, for Wes or anybody else," one senior ally said. A second said: "The idea he'd walk away if somebody said the budget hadn't landed well is nonsense." They added that Starmer was determined to fight for change for the country despite the many difficulties they faced.

The first ally added: "We have a challenging situation in the PLP. We know everything is a bit febrile and everybody is concerned.

"But the consequences of a leadership challenge would be enormous and people need to remember that.

"If you chuck a leadership challenge in just 18 months into government you'd destabilise the markets, our allies and I don't think the public would forgive us.

"The impact would be very serious. MPs need to think about the reality of what a challenge right now would mean."