Labour is at war over the Treasury

Labour strategists question whether Reform will be able to maintain its populist turn.

Reform’s rise the party now averages 25 per cent in the polls has sharpened Labour 's own dilemmas.

Blue Labour calls for the government to back the public ownership of water and steel and to “scrap the fiscal rules”.

A recurring criticism inside government is that Reeves has been captured’ by the Treasury .

But those who seek to find daylight between No 10 and No 11 have so far laboured in vain.

Some inside government hope that the appointment of a Downing Street economic adviser will force Starmer to adopt a more critical perspective.

But others believe a far more radical counterweight is needed to the institutional power of Treasury .