LONDON – The UK government is bracing itself for a period of uncertainty as Prime Minister Keir Starmer faces a leadership challenge. Andy Burnham, the well-regarded mayor of Greater Manchester, is gearing up for a bid but must first secure a return to Parliament to officially launch his campaign.
Burnham’s path back to Westminster is not straightforward. He must first contend with a formidable challenge from the anti-immigrant Reform UK party in a by-election for the parliamentary seat that has been vacated for his potential return.
Financial markets reacted on Friday, with British government borrowing costs climbing and the pound taking a hit, reflecting investors’ concerns about the ongoing turmoil within the government. The currency has seen a 1.4% drop against the U.S. dollar over the past week.
Speculation about Starmer’s leadership, simmering for weeks, erupted into open defiance within the Labour Party on Thursday. Burnham’s announcement of his leadership ambitions was followed by two other senior figures preparing their own bids. The pressure on Starmer intensified following the Labour Party’s poor performance in last week’s local elections, which saw them lose support to both the right-wing Reform UK and the left-wing Green Party.
On Friday, Housing Secretary Steve Reed urged party members to avoid a potentially divisive leadership contest. He emphasized that such a battle could distract the government from addressing critical issues like the cost of living crisis and inadvertently strengthen Reform UK’s position.
“This weekend, people should pause, reflect on the setbacks of the week, and return ready to prioritize the country over party politics,” Reed told the BBC. “We need to focus on delivering the change we were elected to implement.”
Cabinet resignation adds pressure on Starmer
That plea came after a week in which political jockeying overshadowed everything else in Westminster.
After dozens of Labour members publicly called for Starmer to step down, Health Secretary Wes Streeting on Thursday became the first Cabinet minister to resign. While praising Starmer’s “courage and statesmanship” in international affairs, Streeting said he had lost confidence in the prime minister’s leadership because of missteps on domestic issues.
“Where we need vision, we have a vacuum. Where we need direction, we have drift,” Streeting wrote in a stinging resignation letter.
“Leaders take responsibility, but too often that has meant other people falling on their swords,” he added. “You also need to listen to your colleagues, including backbenchers, and the heavy-handed approach to dissenting voices diminishes our politics.”
Streeting stopped short of putting himself forward as the best candidate to lead the party at the next general election, suggesting Starmer should step aside to allow a “broad” field of candidates to debate the future of the party.
That seemed to be a nod to Burnham, a former Cabinet minister who left Parliament in 2017 to run for mayor of Greater Manchester. Burnham has been looking for a way to return to the House of Commons so he can challenge Starmer for the top job.
Josh Simons, a Labour lawmaker from Northern England, provided that opening on Thursday by resigning his seat explicitly to open up a seat for Burnham. But that was only the first step for Burnham. Before he can return to Westminster, Burnham must win a special election to represent Makerfield, a community where Reform UK posted strong results in last week’s local elections.
Burnham acknowledged these challenges on Thursday when he announced his candidacy for the seat.
“I truly do not take a single vote for granted and will work hard to regain the trust of people in the Makerfield constituency, many of whom have long supported our party but lost faith in recent times,” he said in a statement.
