Labour Loses UK Local Elections; Starmer Rejects Calls to Resign

British Prime Minister Keir Starmer told his Cabinet on Tuesday that he has no intention of resigning and that a formal leadership contest within the Labour Party has not been triggered. Starmer faced the meeting at No. He said the country expects the government to focus on governing rather than internal instability that carries an economic cost.

The pressure intensified after Labour suffered heavy defeats in local elections last week, with many voters citing dissatisfaction with Starmer personally. By Tuesday the number of Labour MPs calling for his departure had reached at least 78, according to the BBC.

Housing, communities and local government minister Miatta Fahnbulleh became the first member of the government to resign, urging Starmer to do the right thing for the country and set an exit timetable. Starmer, who led Labour to a landslide victory in June 2024, has seen his personal poll ratings fall to record lows less than two years into his premiership.

A series of policy U-turns, particularly on welfare reform, contributed to the party's poor showing in the local votes. On paper his position remains secure, with Labour holding 406 of 650 seats in the House of Commons and no general election required until 2029.

Streeting, 43, is viewed as one of the government's strongest communicators and has been linked to policy proposals from the Labour Growth Group. That group called for a rise in capital gains tax to fund a 2p cut in national insurance, greater powers for regional mayors, creation of a new Department of the Prime Minister, and allowing Thames Water to fail.

Streeting has denied past speculation that he was plotting against Starmer but has told allies he would consider a leadership bid if the government collapses. Greater Manchester Mayor Andy Burnham, 56, has long been seen as a potential rival. A center-left figure who served as health and culture secretary in previous Labour governments, Burnham's path to the top job is complicated by the convention that the prime minister must sit in Parliament.

His supporters have discussed a delayed contest that would allow him to contest a by-election and return to the House of Commons. Burnham's allies in the Tribune group of MPs have proposed changing the UK's fiscal rules, stripping the Treasury of its growth remit, reducing council tax and replacing stamp duty with a new property tax.

Former deputy prime minister Angela Rayner, 46, enjoys support on the left of the party. Brought up in social housing and a former trade union activist, she was forced to resign from government last year over a tax issue on a house purchase that remains under review.

Rayner led a revolt over the appointment of Peter Mandelson as ambassador to Washington because of his past ties to Jeffrey Epstein. Energy Secretary Ed Miliband and Home Secretary Shabana Mahmood have also been mentioned as possible contenders, though both have played down personal ambitions.

Groups linked to Streeting and Burnham published competing visions for economic policy in recent days. The Growth Group document argued for refocusing energy policy on the cost of clean power rather than the volume generated, a shift from the current approach.

One minister described the programme as radical, saying it backs working people, cuts the cost of essentials and challenges vested interests. The Tribune group's essays in the Renewal journal argued that Britain's economic settlement is no longer delivering, with growth too weak, uneven and often driven by asset inflation.

Progressive thinktanks including the Institute of Public Policy Research, New Economics Foundation and Joseph Rowntree Foundation are expected to publish papers this week calling for rent caps to reduce living costs, an idea ministers have previously ruled out.

Starmer is finalizing his second king's speech, expected to include legislation to move closer to the EU, new immigration curbs, the Hillsborough law on public inquiries and leasehold reforms. Government officials said the speech, due to accompany the state opening of Parliament on Wednesday, is unlikely to be cancelled despite the uncertainty over the prime minister's position.

British government debt tumbled further as Starmer's premiership appeared on the brink. The prime minister has cited the risk of economic instability from prolonged leadership speculation. Defence Secretary John Healey said additional instability was not in Britain's interest. He urged Labour MPs to think about the direction the country needs.

“I take responsibility for these election results and I take responsibility for delivering the change we promised. The country expects us to get on with governing. That is what I am doing and what we must do as a Cabinet.”

“The past 48 hours have been destabilizing for government and that has a real economic cost for our country and for families.”