Sir Keir Starmer is facing a potential rebellion as Labour MPs warn patience is "wearing thin" with the Prime Minister.
Senior members of the soft-left Tribune Group are said to have gathered the 80 MPs needed to put forward a candidate to challenge Sir Keir's leadership.
According to The Times, one Labour MP in the group said: "It’s all about the polls.
"We can’t be below 20 per cent at the polls for much longer."
The MP added that patience in the Labour Party was "wearing thin" with the Prime Minister.
A source close to the group confirmed it had the required numbers to put forward a candidate for a leadership challenge, the newspaper reports.
Sir Keir warned his Cabinet on Tuesday against "distractions" after days of Labour civil war and Budget leaks, Downing Street said.
The Prime Minister also issued a plea for unity following the extraordinary briefing spat last week suggesting Health Secretary Wes Streeting was plotting a leadership challenge.
His official spokesman said: "The Prime Minister opened Cabinet by setting out the importance of the Government’s mandate to renew the country.
"He said distractions meant our focus shifted from where it mattered most, working every day in service of the British people."
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Tories blame Labour's last Budget for fuelling inflation
The Conservatives have placed blame on Rachel Reeves’ last Budget for fuelling inflation after figures showed the rate of Consumer Prices Index inflation fell to 3.6 per cent in October.
Shadow chancellor Sir Mel Stride said: "Inflation has been above target every single month since Labour’s last Budget, leaving working people worse off.
"Labour’s last Budget hiked borrowing and taxes, stoking the inflation now hitting families.
"If Labour had any backbone, they would adopt our £47billion savings plan and our golden economic rule next week to ease inflationary pressures.
"Only the Conservatives have the leader with a backbone, the plan and the team to stabilise the public finances – reducing inflation and delivering a stronger economy."
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Rachel Reeves should not use fallen inflation to justify 'stealth tax' - Lib Dems
Rachel Reeves should not use lower inflation as a justification for "stealth tax" at the Budget, the Liberal Democrats have said.
The party’s Treasury spokeswoman Daisy Cooper said: "As the cost-of-living crisis rages on, the Chancellor mustn’t look this small gift horse in the mouth.
"Hitting people with a stealth tax at next week’s Budget would prolong the pain of higher taxes for much longer and unfairly pull poorer pensioners and low-income workers into paying tax for the first time.
"We Liberal Democrats are calling for emergency measures to slash people’s energy bills, save our high streets with a VAT cut for hospitality and boost growth in every corner of the UK – funded fairly by taxing the banks.
"The Chancellor must put households and high streets first, and put an end to the most vulnerable from having to choose between heating and eating."
Inflation falls for first time in months handing Rachel Reeves a small boost ahead of Budget
Inflation has dropped to 3.6 per cent, the latest figures show
| GETTY/ONSInflation has dropped to 3.6 per cent, offering households a small break from the cost of living crisis as price rises continue to cool.
The latest consumer prices index (CPI) figures were released this morning, down from 3.8 per cent in September.
The slight fall will come as rare good news for Chancellor Rachel Reeves just one week before she delivers her Budget on November 26.
Economists had widely predicted today’s result after months of signals that inflation had "peaked", and most expect the rate to keep easing gradually into next year.
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