The Labour Party’s poor performance in recent local elections has thrown the UK into turmoil, nearly two years after Starmer secured a large majority with promises of stability and an end to political turbulence.
For days, Labour MPs have been urging Starmer, 61, to either resign or outline a plan for his departure. On Thursday, Health Minister Wes Streeting became the first senior official to step down, citing his belief that “it is now clear you will not lead the Labour Party into the next general election”.
Although Streeting did not officially initiate a leadership contest, figures like Greater Manchester Mayor Andy Burnham, 56, have begun positioning themselves for a potential leadership challenge, which Starmer has pledged to contest.
In his resignation letter, Streeting criticized Starmer, calling for a comprehensive debate focused on ideas rather than personalities. “It needs to be broad, and it needs the best possible field of candidates,” he wrote. He also remarked that “where we need vision, we have a vacuum,” and that leaders should take responsibility, which has often resulted in others stepping down.
A source close to Streeting indicated he had enough support to pursue a leadership challenge but preferred an orderly transition set by Starmer.
Starmer responded with a letter expressing regret over Streeting’s resignation, stating: “it is incumbent on all of us to rise to what I see as a battle for the soul of our nation” and to “turn the page on the chaos”. He promptly appointed James Murray, a supporter, as Streeting’s successor.
Starmer has declared his intent to fight to retain his position, with sources close to him affirming his determination to contest any leadership challenge.
The pound dipped slightly following Streeting’s resignation and the news of Burnham’s potential return to parliament.
POTENTIAL CANDIDATES FACE OFF AGAINST STARMER LOYALISTS
Angela Rayner, Starmer’s former deputy, announced on Thursday that she had been cleared of intentional wrongdoing regarding her tax affairs, an obstacle to challenging the Prime Minister. However, the 46-year-old did not confirm whether she would make a formal challenge.
Burnham also found a potential route to leadership. After a Labour MP in Greater Manchester stated he would vacate his seat, Burnham expressed his intention to seek the Labour candidacy for the seat. Winning the seat would be necessary for him to challenge Starmer, although he did not explicitly state this goal.
“Much bigger change is needed at a national level if everyday life is to be made more affordable again. This is why I now seek people’s support to return to parliament,” Burnham said on X.
Another possible contender is Armed Forces Minister Al Carns, 46, a former Royal Marine viewed by some as a fresh face for the Labour Party.
Nevertheless, Starmer still has support from some quarters. Education Minister Bridget Phillipson reiterated her backing for Starmer and implied that his top ministers were also supportive. “This is now a chance for us to pause, take a breath as a party and try and draw a line under all of this,” she stated.
Starmer is maintaining a “business-as-usual” stance, and Finance Minister Rachel Reeves cautioned MPs against causing instability when the economy, which grew unexpectedly in March, is showing signs of improvement.
Business leaders worry that another leadership race, which would result in Britain’s seventh prime minister in about a decade, could deter investment. The Labour government has emphasized the need for investment to improve the UK’s prospects.
Political instability has increased borrowing costs, with some investors wary of the possible rise of a more left-leaning, tax-and-spend Labour leader.
“There have been too many changes of government strategy, leadership, just in my six years of being CEO,” Amanda Blanc, CEO of insurance company Aviva, commented to Reuters. “And I think that is harmful to a major economy such as the UK and how we are perceived abroad.”
