Ed Davey, leader of the Liberal Democrats, is facing mounting internal challenges following recent resignations from key party spokespersons and growing dissatisfaction among some Members of Parliament. The party, currently tied with the Greens as one of the least popular in Britain’s five-party landscape, has seen criticism over its approach to economic policy and its stance on European Union relations.

Charlie Maynard, the Lib Dem MP for Witney, announced his resignation as Treasury spokesperson on Friday and called on fellow MPs to support a motion of no confidence in Davey when Parliament reconvenes. While Maynard has not expressed any personal bid to replace Davey, his departure signals significant unrest within the party ranks. Similarly, Alison Bennett, MP for Mid Sussex, stepped down from her position as care and carers spokesperson earlier in the week. Both MPs have yet to publicly elaborate on their reasons for leaving their roles.

Maynard, known as a fiscal hawk within the party, appeared to strongly disagree with Davey’s proposals unveiled at the party’s recent conference. These included a series of unfunded tax cuts: raising the tax-free personal allowance, reducing fuel duty by 10p for three months, lowering the bus fare cap from £3 to £1, and cutting rail fares by 10 percent. Davey argued these measures would be financed by economic growth resulting from rejoining the EU’s single market and customs union. However, Maynard, who supports closer ties with the EU, reportedly views the expectation of short-term tax cuts being funded by long-term growth as unrealistic and fiscally irresponsible.

In particular, Maynard appeared skeptical of Davey’s claim that the £2 billion cost of the temporary 10p fuel duty cut would be “self-funding” through increased revenue from government levies such as the energy profits levy, gas taxes, VAT, and fuel duty. Observers noted that if self-funding were genuinely viable, a permanent cut might be more logical.

Tensions also seem linked to Davey’s opposition to the recent policy adjustment led by Andy Burnham, which alters the triple lock for uprating the state pension. The modification aims to maintain pension value in relation to average earnings without allowing it to consume an escalating share of national income, a move seen by some as a pragmatic step toward sustainable public finances. Davey’s resistance to this adjustment reportedly contributed to dissatisfaction among fiscally conservative party members.

Despite these challenges, a contingent of at least 17 Lib Dem MPs, including Deputy Leader Daisy Cooper, has publicly expressed support for Davey’s leadership. Many within the party attribute the unexpected success of the Lib Dems in recent elections to the campaign strategy overseen by director Dave McCobb, underscoring their belief that the current leadership is broadly on the right track.

Nonetheless, the emerging leadership crisis highlights ongoing debates within the Liberal Democrats about how best to balance economic responsibility with progressive policies and how prominently to position the party as a pro-EU force in British politics. With Parliament set to return next week, the party’s internal dynamics could face further tests as it navigates these divisions.