Starmer's Last Stand? Labour Leader Faces Ousting Amid Budget Fiasco and Internal Revolt

Sir Keir Starmer, the current leader of the Labour Party, faces an escalating crisis within his ranks, marked by stark warnings from senior figures, internal power struggles, and an accelerating race for leadership. Former Labour Home Secretary Lord David Blunkett has issued a dire caution, stating that Starmer needs to “get a grip” within three months or risk severe consequences from both the parliamentary party and beyond. Blunkett emphasized the necessity for Starmer to demonstrate competence, react to public concerns, and improve the political experience of his immediate team, suggesting that Chief of Staff Morgan McSweeney should be moved aside in favor of a more seasoned operator akin to Tony Blair’s former Chief of Staff Jonathan Powell.
The turmoil has been exacerbated by a tumultuous week in Parliament, characterized by confusion over a potential leadership challenge spearheaded by Health Secretary Wes Streeting and significant chaos surrounding Rachel Reeves' forthcoming Budget. Lord Blunkett's warning underscored that if Starmer fails to display effective management and a connection with public sentiment, a "serious eruption" is imminent. He also critically noted the unusual nature of Downing Street initiating a briefing against a potential challenger, a move he could not recall happening even during past periods of leadership paranoia under Harold Wilson, Gordon Brown, or John Major. This action, clearly originating from someone close to Starmer, highlights a perceived lack of political sensitivity within his inner circle, prompting Blunkett's call for someone with substantial experience in managing people and understanding external perceptions.
Adding to the pressure, The Mail on Sunday previously reported on Labour MPs plotting to oust Starmer, identifying four initial contenders dubbed the "drab four": Wes Streeting, Angela Rayner, Shabana Mahmood, and Ed Miliband. The recent disastrous attempt to brief against Wes Streeting, intended to quell leadership ambitions, paradoxically helped elevate his profile. Simultaneously, Rachel Reeves' "omnishambles" Budget preparations, including a humiliating U-turn on income tax increases, have brought a challenge to Sir Keir closer than ever. Growing numbers of Labour MPs are now demanding the removal of Morgan McSweeney, with some asserting that "either Morgan goes or the Prime Minister does," citing widespread fury among MPs over Starmer's perceived disconnect.
The field of potential "stalking horses" has widened considerably. While Manchester Mayor Andy Burnham remains a favorite among the public and Labour Party members, his lack of a Commons seat presents a barrier. Wes Streeting, despite lagging in ratings among party members compared to Burnham and Angela Rayner, is reportedly being pushed by allies for an early "coronation" to capitalize on his current momentum and Rayner's recovery from her resignation as Deputy Prime Minister over stamp duty issues. Beyond the initial "drab four," other possible contenders include Defence Secretary John Healey, Education Secretary Bridget Phillipson, former Transport Secretary Louise Haigh, and Lucy Powell, Labour's deputy leader and an ally of Mr. Burnham.
The internal machinations also reveal an ongoing power struggle within No 10, with left-wing Labour MPs warning of a "stealth takeover" by Tony Blair’s key lieutenants. Jonathan Powell, who led Blair's Downing Street operation, is reportedly unimpressed by McSweeney’s performance. Other Blairite figures like former Health Secretary Alan Milburn, PR man Tim Allen, and Tom Baldwin are exerting significant influence, raising concerns about a return to "an older political moment" and a narrowing of ideas, as articulated by Left-wing Labour MP Clive Lewis. Mr. Streeting, perhaps sensing this, has begun to distance himself from the Blairite wing, advocating for the Palestinian cause, supporting Ms. Rayner's return to government, and praising Lucy Powell.
Starmer's handling of the briefing crisis has further fueled discontent. Despite his apologies to Streeting and claims that No 10 was not involved, many MPs remain unconvinced, with some even speculating that the briefing might have been orchestrated to boost Streeting as a "new frontman." This perception, coupled with a perceived "out of touch and in denial" response from Starmer, indicates a deep-seated dissatisfaction within the party. Lord Blunkett’s overarching message remains clear: the Prime Minister needs to trust his cabinet, ensure politically astute management, and urgently demonstrate leadership and competence to avert a more severe political fallout.
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