Digital ID, two-child cap, taxes... Starmer on front foot to save his leadership

The prime minister’s supporters say he’s got the message and will mount a spirited defence at party conference. For others it’s too little, too late, writes Rachel Sylvester

- Rachel Sylvester

Within days of being appointed as the prime minister’s economic adviser, Minouche Shafik asked the No 10 policy unit to prepare a paper on the options for reforming property taxes. Downing Street is now working up detailed proposals on everything from council tax revaluation to stamp duty reform and changes to capital gains tax ahead of the budget.

The Treasury is also considering how to fund the abolition of the two-child benefit cap and whether to scrap the pension triple lock. The government is looking for ways to shift the burden of taxation from income to wealth, and redistribute resources between rich and poor and across the generations. Meanwhile the prime minister is set to announce that the UK will formally recognise the state of Palestine.

"Keir is one of the most values-driven people I know," says a cabinet minister who is close to him. "He knows what he believes in. Now he has to show that to the party and the country. We've got to do better as a government."