British Health Minister Wes Streeting resigned on Thursday to call for a leadership contest to oust Keir Starmer, accusing the prime minister of overseeing political drift and forcing others to take the blame for his government's failings.
Disastrous results for the governing Labour Party in last week's local elections have plunged Britain into its latest crisis, just under two years after Starmer won a large majority on a vow to bring stability and end a decade of political chaos.
After days of calls by a growing number of Labour lawmakers for Starmer to either resign or set out a timetable for his departure, Streeting was the first senior minister to break cover, saying he was standing down because "it is now clear you will not lead the Labour Party into the next general election."
But he did not trigger a formal contest, and other senior cabinet ministers expressed their support for Starmer.
Labour members of parliament and trade unions wanted the debate about what comes next to focus on ideas rather than personalities or factions, Streeting's resignation letter said.
"It needs to be broad, and it needs the best possible field of candidates," he wrote.
Starmer responded with a letter expressing regret that Streeting had stepped down, saying "it is incumbent on all of us to rise to what I see as a battle for the soul of our nation" and "turn the page on the chaos."
While his announcement fell short of forcing the launch of a formal leadership contest, Streeting's criticism was stinging.
"Where we need vision, we have a vacuum. Where we need direction, we have drift," Streeting said. "Leaders take responsibility, but too often that has meant other people falling on their swords."
A source close to Streeting said the former health minister had the numbers to mount a formal leadership challenge, but he had not triggered an immediate contest because he felt it would be preferable for Starmer to set out an orderly timetable.
Starmer has repeatedly said he would battle to keep his job, and sources close to the leader say he is determined to fight any contest, which could see him challenged by Streeting and also by senior ministers on the left of the party.
Sterling edged lower after Streeting's resignation.
"It moves us one step closer to a Labour leadership challenge. How many steps are between here and there that's still uncertain," said Nick Rees, head of macro research, Monex Europe, London.
Earlier on Thursday, Starmer's former deputy, Angela Rayner, announced she had been cleared of deliberate wrongdoing over her tax affairs, an impediment to any leadership contest, but she would not say whether she wanted to launch a formal bid.
Other potential candidates from the so-called "soft left" of the party – who favor more state involvement in key industries and protecting workers' rights – include Greater Manchester Mayor Andy Burnham and Ed Miliband, minister for energy security and net zero.
In a boost to Burnham, Labour lawmaker Josh Simons said he would resign from his seat in Greater Manchester, opening a possible route for Burnham to win a place in parliament – something needed for him to make a bid to become prime minister.
Another potential candidate is Armed Forces Minister Al Carns, a relatively unknown ex-Royal Marine seen by some in Labour as a new face who could freshen up the party.
While potential candidates try to garner backers, Starmer is not without his supporters.
Bridget Phillipson, education minister, said she was sad that Streeting had decided to step down, but repeated her backing for Starmer and suggested the rest of the prime minister's cabinet team was also supportive.
"This is now a chance for us to pause, take a breath as a party and try and draw a line under all of this," she told reporters.
Starmer, a 63-year-old former lawyer, has adopted a "business as usual" approach and his finance minister, Rachel Reeves, also warned lawmakers on Thursday against "plunging the country into chaos" at a time when Britain's anaemic economy was turning a corner. The economy grew unexpectedly in March.
The prospect of another leadership race to choose what would be Britain's seventh prime minister in around 10 years has angered business leaders who warn it will deter investment – something the Labour government has said must improve to turn around the nation's fortunes.
The bout of political instability has pushed borrowing costs higher, with some investors nervous over the possible election of a more left-wing, tax-and-spend Labour prime minister.
The boss of Aviva, one of Britain's biggest financial companies, complained that businesses were being hurt by the turmoil.
"There have been too many changes of government strategy, leadership, just in my six years of being CEO," Amanda Blanc told Reuters. "And I think that is harmful to a major economy such as the U.K. and how we are perceived abroad."
