A former minister has stepped back from launching a leadership challenge against Sir Keir Starmer, as the Prime Minister pledged to demonstrate that his critics are mistaken. Catherine West had earlier indicated she would contest the Labour leadership as early as Monday afternoon, aiming to pressure the Cabinet into nominating a replacement prime minister. However, following a speech in which Sir Keir declared he would not 'walk away', Ms West announced she would instead gather support within the party for the Prime Minister to outline a resignation timeline by September.
West's Statement and Reaction
In a statement, Ms West said: 'I have listened to the Prime Minister’s speech this morning. I welcome the renewed energy and ideas. However, I have reluctantly concluded that this morning’s speech was too little too late. The results last Thursday show that the PM has failed to inspire hope. What is best for the party and country now is for an orderly transition.' Speaking to the Press Association, she added that she believed Sir Keir's speech was 'heartfelt', but it did not 'change the mathematics of how many seats we lost on Thursday'.
Speculation regarding the Prime Minister's future has intensified since Thursday's elections, which saw Labour lose nearly 1,500 English councillors, regress in Scotland, and drop to third place in Wales. This electoral defeat has prompted a series of Labour MPs to demand that Sir Keir step down or set a departure date.
Starmer's Defiant Speech
In a central London address on Monday, Sir Keir accepted 'responsibility' for the losses but insisted he would continue. Addressing those calling for his resignation, he stated: 'I’m not going to shy away from the fact that I’ve got some doubters, including in my own party. I’m not going to shy away from the fact that I have to prove them wrong, and I will.' The speech had been promoted as outlining sweeping reforms to confront the 'big challenges' facing Britain.
Sir Keir announced several measures, including legislation to nationalise British Steel, a ban on 'far-right agitators' entering the UK for a planned march on Saturday, and a strategy to position the UK 'at the heart of Europe'. He framed the current political moment as a 'battle for the soul' of the nation, warning that if Labour fails, the country would head down 'a very dark path'. He said: 'This is nothing less than a battle for the soul of our nation and I want to be crystal clear about how we will win it because we cannot win as a weaker version of Reform or the Greens. We can only win as a stronger version of Labour, a mainstream party of power, not protest.'
Mixed Reactions from Labour MPs
Following the speech, a few backbenchers voiced support for the Prime Minister. Macclesfield MP Tim Roca and Gedling’s Michael Payne stated that Sir Keir had shown he understood 'the scale of the challenge' confronting the country. However, others continued to demand his resignation. North Northumberland MP David Smith, who has served as the UK’s special envoy for freedom of religion or belief since 2024, said Labour owed 'a debt of gratitude' to Sir Keir but could not 'carry on with the approach we have taken' since the general election.
Some have looked towards Greater Manchester Mayor Andy Burnham, suggesting he should be allowed to return to Parliament. But Sir Keir declined to comment on whether he would support Mr Burnham’s return, stating it was a matter for Labour’s national executive committee (NEC). The NEC, which is dominated by Starmer supporters, previously blocked Mr Burnham from contesting the Gorton and Denton by-election earlier this year, a seat that was subsequently won by the Greens.
Rayner's Intervention
In a separate speech to the Communication Workers Union on Monday, former deputy prime minister Angela Rayner—herself considered a potential leadership contender—said the decision to block Mr Burnham should be 'put right'. She stated: 'We as a party have to do better than this and we can only prove we mean our Labour values by putting the common interest ahead of factionalism. And we can start by accepting that Andy Burnham should never have been blocked. It was a mistake that the leadership of our party should put right.'
Financial Market Reaction
Meanwhile, UK government bonds and the pound came under pressure in a largely negative financial market response to Sir Keir’s speech. Yields on 30-year government bonds, also known as gilts, rose 10 basis points to 5.68%, while 10-year gilt yields also increased to just below 5%, up 8 basis points at 4.99%. Gilt yields move inversely to bond prices, meaning their values fell as yields rose. Sterling also weakened, falling 0.2% to 1.36 US dollars and 0.1% lower against the euro at 1.15 euros.
Conservative Response
Responding to the speech, Conservative leader Kemi Badenoch described it as 'sad to watch', adding: 'With so many resets, even his reset button needs a reset. But I do not take pleasure in watching the Prime Minister flounder. The country needs leadership, not another speech from a man who clearly knows something has gone badly wrong, but still can’t explain why.' Mrs Badenoch also dismissed Labour’s 'pretenders jostling for his job', saying: 'They are busy arguing over who should drive the car, but the truth is they are all heading in the wrong direction. They have no vision for the future.'
