Sir Keir Starmer has refused to rule out sacking Rachel Reeves as Chancellor of the Exchequer.

In the final Prime Minister’s Questions before next week’s local election, Tory leader Kemi Badenoch quizzed Sir Keir on whether he would reshuffle Ms Reeves out of No11.

The Leader of the Opposition said: “Yesterday we learnt that the cost of government borrowing is now the highest in two decades, that’s under him.

“Instead of getting a grip on the economy, the Chancellor is briefing out rent controls to curry favour with left-wing backbenchers.

“This is not a serious way to run the economy. It is time for the Prime Minister to give her an easier job.

“Will he listen to businesses, listen to the country and reshuffle her?”

The Prime Minister replied: “At the Spring Statement the Chancellor was very proud to say inflation was down to three per cent and falling, six interest rates cuts, we’ve seen the growth figures for the early part of this year.

“And she says well the cost of borrowing’s gone up. Yes, because there’s a conflict in Iran. And what did she want to do? When I say we wouldn’t be dragged into our war, what did she do? She said we should jump in with both feet without regard to the consequences.”

“I didn’t hear him say he’s not reshuffling the Chancellor,” Mrs Badenoch quipped. “It sounds like she’s toast.”

The Leader of the Opposition went on to issue a warning to Sir Keir about the potential threat posed by leadership rivals, including Angela Rayner.

She also pointed out how one Labour MP had admitted “his days are numbered”.