Starmer Says He Will Not Resign After Labour MPs Call for Leadership Change

Starmer had sought to steady his position with a speech on Monday in which he acknowledged public frustration with him personally and pledged to prove doubters wrong. He used the address to announce the nationalisation of British Steel and plans for stronger ties with Europe.

The revolt follows disastrous local election results last week in which Labour lost almost 1,500 councillors in England, lost power in Wales and recorded its worst ever result in the Scottish Parliament election. Reform UK and the Greens made gains in areas where Labour suffered heavy losses.

The elections were seen as a key test of Starmer’s leadership amid poor poll ratings and controversy over his decision to appoint Peter Mandelson as US ambassador. Mandelson was later forced to resign from the post over past associations. Groups linked to potential future leadership contenders have begun setting out alternative policy platforms.

One document connected to Health Secretary Wes Streeting called for raising capital gains tax to fund a cut in national insurance, giving mayors more tax powers, creating a new Department of the Prime Minister and allowing Thames Water to fail. It also urged a shift in energy policy to focus on the cost of clean power rather than the volume generated.

Another set of proposals from a group aligned with Greater Manchester Mayor Andy Burnham called for changes to fiscal rules, stripping the Treasury of its growth remit and replacing council tax and stamp duty with a new property tax.

““The past 48 hours have been destabilising for government, and that has a real economic cost for our country and for families. The Labour Party has a process for challenging a leader and that has not been triggered.””

The prime minister is finalising his second king’s speech, which is still scheduled for delivery on Wednesday and includes measures to move closer to the EU, new immigration curbs, the Hillsborough law and leasehold reforms. Officials have said the speech cannot be cancelled despite the uncertainty over Starmer’s position.

No formal leadership challenge has been launched. Potential candidates mentioned in media coverage include Health Secretary Wes Streeting and former deputy prime minister Angela Rayner, though both would need to navigate party rules and internal dynamics.

Greater Manchester Mayor Andy Burnham has support but would first need to become an MP.