The big problem for Starmer is that he is wedded to Reeves, he has backed her all the way until now.
If he gives her the sack it makes him more vulnerable and puts a big question mark over his judgement - it's like Truss after she booted Kwartang.
The markets fell and bond prices rose yesterday on the expectation of Reeves sacking - so it looks like the traders think that she is at least a better option than the uncertainty that would follow her departure. However, I am not sure how Reeves can recover from this, she is sort of dead in the water despite the belated backing of Starmer last night.
I would expect her to be replaced at some point in the future but perhaps in a future time of relative political calm when the fallout from this latest uturn has dissipated.
It's been a pretty poor first year for the government in terms of communication and a couple of disastrous policies and the uturns. There have been some good things as well, a few policies look reasonable. To me stability is very important but the government don't seem to be able to manage that despite their massive majority.