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Sir Keir Starmer is plotting to remove Chancellor Rachel Reeves in a Cabinet reshuffle as a result of deep-seated doubts about his top economic ally, Tory MP Esther McVey has claimed. In a wide-ranging interview, Ms McVey told the Daily Expresso podcast the Prime Minister had previously attempted to oust Ms Reeves but backed down amid fears of political backlash.

Ms McVey insisted: “He was hoping to do a reshuffle then to get her out, but then he couldn’t. She cried. He didn’t want to be called a misogynist. Didn’t know what to do. So he didn’t do anything.”

The former Cabinet minister alleged the Prime Minister had already lined up a successor, suggesting Treasury minister Darren Jones had been promised the top job.

Ms McVey said: “He’d probably promised Darren, ‘You’re going to become Chancellor.’ He was probably already working on that. He wanted Reeves out then. It didn’t happen.”

Ms McVey claimed the internal manoeuvring had left Labour’s top team fractured, with multiple senior figures positioning themselves for advancement.

She added: “You’ve promised somebody something, so you’ve got to give them something,” arguing that Mr Jones’s subsequent move into Downing Street was part of a longer-term plan to install him at the Treasury.

She also suggested Deputy Prime Minister Angela Rayner is preparing for a more prominent role, amid speculation she could benefit from any reshuffle.

Ms McVey said: “She thinks she’s coming in,” describing a febrile atmosphere in Westminster where “everybody’s up for the top job”.

The Conservative MP cast doubt on whether Sir Keir could successfully remove Ms Reeves, warning that reshuffles often trigger backlash from those demoted.

Ms McVey said: “For every person you appoint, you’re getting rid of somebody. You’re putting them to the backbenches where they can create a lot of trouble. I don’t believe he can do that.”

Ms McVey argued that Sir Keir’s leadership is increasingly unstable, claiming Labour MPs are “gloomy” and “rattled” ahead of local elections.

She said: “They see it’s all over. It’s curtains for them,” adding that the Prime Minister “scurried out of the chamber” after Prime Minister’s Questions and is “not safe”.

She pointed to internal dissent within Labour ranks, highlighting a rebellion led by Emma Lewell-Buck, who warned the party risked appearing “out of touch and disconnected from the public mood”.

Ms McVey said: “The public thinks there’s a bad whiff about this. They’re now questioning the moral compass of the Labour Party.”

The row centres partly on Labour’s links to the group Labour Together and the influence of senior figures such as Peter Mandelson, which Ms McVey described as a “dark cloud” hanging over the party.

She also accused Sir Keir of mishandling parliamentary discipline, warning that heavy-handed whipping could backfire.

Ms McVey said: “If you over-whip MPs, they won’t forgive you. That goodwill you had in the bank… you have not got it anymore.”

Beyond internal politics, Ms McVey argued Labour is increasingly disconnected from voters, citing Commons exchanges on immigration, crime and social policy. She criticised ministers including Bridget Phillipson for dismissing concerns raised by MPs, saying: “That is completely out of touch with what the country is talking about—fairness.”

She added that Labour risks electoral punishment as a result.

Ms McVey said: “The reason they’re going to be absolutely pummeled at those local elections is because they are out of touch with what the regular person in the UK is saying and thinking.”

No. 10 has been approached for comment.