Keir Starmer suffered an unhappy birthday today as the government’s popularity slumped to a new record low and investors hammered the UK. 

YouGov found Labour’s approval rating has slumped to minus 59 – with 70 per cent satisfied with their performance and 11 per cent dissatisfied.

The net figure was down five points on a week ago, and the worst the firm has yet detected.  

The grim numbers emerged after the PM desperate reshuffle ‘sidelined’ Rachel Reeves and sparked a frenzy on markets.

Government borrowing costs have hit their highest point in 27 years as investors anticipate increased borrowing by the Labour party. This expectation comes amidst a slowing economy and demands from MPs for enhanced spending.

This morning, Sir Keir gathered his newly revamped leadership team at Downing Street for the first time, halting any attempts to celebrate his 62nd birthday with a song.

Sir Keir – who has admitted he does not like to be reminded about his age – ordered a halt after several ministers started up the tune.

Keir Starmer’s new-look top team assembled in Downing Street amid fears the ground is being laid for another brutal tax raid at the Autumn Budget 

YouGov found Labour’s approval rating has slumped to minus 59 – with 70 per cent satisfied with their performance and 11 per cent dissatisfied

The PM gathered his Cabinet after bolstering his control of economic policy in an humiliation for Rachel Reeves

Angela Rayner made a flamboyant appearance in Downing Street this morning amid the furore over her property dealings

John Healey and Ed Miliband were at Cabinet this morning

Education Secretary Bridget Phillipson attended the Cabinet gathering this morning

Home Secretary Yvette Cooper tried to cool speculation that Ms Reeves has been effectively kneecapped in a round of broadcast interviews this morning

The tax burden is due to hit a new record high as Labour tries to cover spending  

In a major reshuffle yesterday, Sir Keir recruited the Chancellor’s deputy to act as his ministerial enforcer and brought in two economic specialists to No10.

This overhaul followed concerns that the Prime Minister was caught off guard by the Treasury’s proposals to cut winter fuel payments and restrict benefits, which led to significant backtracking.

But the Tories warned that left-wing ‘tax fanatics’ had been brought in to conduct a ‘radical socialist takeover’ as Labour faces a black hole of up to £50 billion in the public finances.

MPs have been heaping on pressure for ‘wealth taxes’ to fund fresh spending splurges. 

The problems became even more stark today as markets drove up borrowing costs on the UK’s debt mountain in response to the political manoeuvring, with Tories warning the country is ‘broke’ and must rein in spending.

Yields on 30-year UK bonds, known as gilts, leapt to just below 5.7 per cent, the highest level since 1998.

Higher yields mean investors are charging more money to lend to the UK – adding to the Chancellor’s Budget headache.

Mutterings are also growing on the Labour benches that Sir Keir himself and a lack of direction is the fundamental issue. 

Downing Street said the Government’s ‘ironclad commitment’ to its fiscal rules remains, denying that Ms Reeves had been sidelined.

The Prime Minister’s official spokesman said: ‘Our ironclad commitment to our robust fiscal rules remain.

‘You’ll have seen since this Government took office that we have taken the necessary decisions to stabilise the public finances, drive growth.

‘Our fiscal strategy has been backed by the IMF and others, and our approach has helped interest rates to be cut five times since the election, which is the best way to bring borrowing costs and inflation down.’

Asked whether the shake-up of Sir Keir’s team was a blow to the Chancellor’s authority, the official said: ‘No, and as I say it reflects the strengthening of the relationship between the Prime Minister and the Chancellor, a determination to drive growth in the economy, a recommitment to our robust fiscal rules.’

The spokesman said that at Cabinet Sir Keir ‘reiterated the changes made to the No10 operation this week to deliver on that agenda, which will ensure he has the strongest possible team on the pitch to deliver this change’. 

‘He said he and the Chancellor had spoken at length over the summer about how these changes would bolster their joint approach to the growth agenda, and ensure it is a key factor when taking decisions,’ Downing Street said. 

Home Secretary Yvette Cooper tried to cool speculation that Ms Reeves has been effectively kneecapped in a round of broadcast interviews this morning.

‘I don’t think so at all. Quite the reverse. I think the Prime Minister and the Chancellor have always worked extremely closely together and continue to do so,’ she said.

Asked if there would be more input into the coming autumn budget from No 10 than previously, Ms Cooper replied: ‘In my experience through successive chancellors through very many years, ultimately, the chancellor always writes the budget, because that’s the nature of the complex mix of things, but always with conversations and discussions with the Prime Minister throughout, so you get that strong support.’

Downing Street insisted the PM and Ms Reeves will continue to work ‘in lockstep’.

The Chancellor will try to regain traction this week by arguing that investment and training can boost flagging economic growth.

However, Sir Keir appears to have abandoned his previous approach of subcontracting economic policy to Ms Reeves.

Former Tory cabinet minister Sir James Cleverly suggested the changes signal that the PM is ‘getting ready to throw Rachel under the bus in the proper reshuffle that is inevitably coming’.

Labour MPs voiced scepticism about the success of the changes. 

One told the Guardian: ‘Overall I think it is not something you can staff your way out of. 

‘This is about the politics and the story we tell. All the comms and strategy people in the world won’t fix that.’ 

Sir Keir has poached Ms Reeves’ Treasury deputy Darren Jones to be his ministerial enforcer  

Baroness Minouche Shafik has been hired as the PM’s Chief Economic Adviser in the latest revamp of No10’s top team

Kemi Badenoch accused the PM of ‘shifting the deckchairs on the Titanic’.

She told reporters in Scotland: ‘I think that the reshuffle, or mini-reshuffle, he had yesterday is just shifting the deckchairs on the Titanic.

‘Unemployment has risen every single month since Labour came into office, we know that Labour are coming back for even more tax rises after a disastrous budget.

‘I don’t know what this says about his confidence in the Chancellor, but the fact that he’s taken his chief secretary of the Treasury and put him into Number 10 does not inspire me with confidence because he’s one of the people who’s been making the mess. I don’t think it’s going to make any difference.’