Bookmakers have cut the odds on Sir Keir Starmer quitting or being forced out as Labour leader before the end of this year.The Prime Minister is now just 5/1 to lose his party’s leadership at some point in 2025, according to Ladbrokes. That’s down from 7/1.

Deputy Prime Minister Angela Rayner and Health Secretary Wes Streeting are the favourites to replace him. The odds on Keir Starmer quitting in 2026 are 7/2, having been 4/1 in the spring. Cal Gildart of Ladbrokes said: “This latest odds cut suggests a surprise ousting in 2025 for Keir Starmer has never been likelier. If it comes to pass, it looks like the Labour leadership will be a shootout between Wes Streeting and Angela Rayner.”

The Prime Minister has suffered a series of setbacks in recent months, with a partial u-turn on plans to axe winter fuel payments for millions of pensioners and another partial u-turn on cuts to disability benefits.

He also apologised for warning that the UK risked becoming an island of strangers unless it cut immigration, a comment that critics said was similar to remarks made by anti-immigration politician Enoch Powell.

There have been questions about Labour’s management of the economy too, with business leaders claiming that increases to National Insurance contributions had forced them to cut investment and threaten jobs.

Sir Keir yesterday insisted he was proud of the Government’s achievements in its first year, following the election on July 4 last year.

Giving a readout of Tuesday morning’s Cabinet meeting, a No 10 spokesman said: “Opening Cabinet, the Prime Minister looked ahead to today’s welfare reforms, which are designed to help those who can work into employment and ensure dignity and security for those who can’t work. He then reflected on the last year in office, saying we could all rightly look back with a real sense of pride and achievement.

“The Prime Minister said that because of tough decisions the Government had taken, it had a platform to build on, with three trade deals, the spending review that was well received by the public and an industrial strategy received well by businesses, both large and small.

“He pointed to a cut in NHS waiting lists, more than 4 million extra appointments, investment in transport, major infrastructure decisions, funding for social and affordable housing, extending free school meals and introducing free breakfast clubs.”

The spokesman also pointed to the “four interest rate cuts in a row while global firms were choosing to back Britain”, and the exemptions from US tariffs for the car and aerospace industries which “meant the world to Jaguar Land Rover workers”.

Asked whether the Prime Minister thought the public shared his assessment of the Government’s record, the spokesman said: “I think the public feel the impact of the Government’s work already for interest rate cuts, three trade deals… but as with every Cabinet member, he is looking forward, not backwards, and intent on moving further and faster to improve the lives of working people up and down the country and help them thrive, not just survive.”