UK's Starmer faces reported leadership challenge from health secretary

UK prime minister Keir Starmer faces potentially his biggest challenge, with his health minister reported to be readying his resignation to try to trigger a contest to replace him.

As Starmer and his ministers stood in silence in Parliament to hear King Charles read out the monarch's annual King's Speech detailing their government's agenda, the ceremony was overshadowed by speculation surrounding Health Secretary Wes Streeting.

The report in the Times newspaper that Streeting was preparing to resign as early as Thursday to mount a formal leadership challenge which could mean the Starmer government's agenda, outlined by Charles amid much pomp and ceremony, might never be implemented.

Streeting's office did not immediately respond to a request for comment.

It's the most dangerous threat to the prime minister since lawmakers began urging him to resign over one of Labour's worst defeats in last week's local elections.

After the reports surfaced, Starmer's spokesperson said the premier had full confidence in Streeting.

Asked if Streeting told Starmer he would resign at a brief meeting earlier on Wednesday, Starmer's spokesperson told reporters: "I'm not going to get into the content of internal meetings, but the prime minister has full confidence in the health secretary."

British government bond futures fell sharply on the report, erasing their day's gains, as did 20- and 30-year government bonds, while the pound weakened against the euro.

Earlier, Streeting had met Starmer at the prime minister's Downing Street office for a meeting that lasted less than 20 minutes. The health minister's team said he would not comment on that meeting to make sure he did not distract from the King's Speech.

Streeting took to X to promote his achievements in tackling waiting times for Britain's state-run health service. "Lots done, lots to do," he wrote, failing to address the report.

Leadership race could be triggered

Starmer has tried to brush off the challenges to his authority and the King's Speech - written by the government and delivered by the monarch - announced plans to boost economic growth, energy security and defense.

But a direct challenge from Streeting would signal a deeper crisis for Starmer, which could trigger a new leadership contest if the health minister has the support of 81 Labour lawmakers to launch a bid.

That could encourage other rivals to enter the race, particularly if Starmer were to be persuaded to step down. However, two potential challengers, Greater Manchester mayor Andy Burnham and former deputy prime minister Angela Rayner, have to overcome hurdles before they would be able to run.

Burnham does not have the necessary seat in parliament ⁠to mount a challenge and Rayner has yet to fully resolve the tax issues that prompted her resignation from office last year.

Streeting is viewed as being on the right of the Labour Party, while both Burnham and Rayner hail from its 'soft left'. Some investors are nervous over the possible election of a more left-wing, tax-and-spend Labour prime minister.

Labour lawmakers have said former leader Ed Miliband, the minister for energy security and net zero, could stand in the place of Burnham or Rayner in any leadership contest to represent the left of the party.

Shore up authority

Starmer had hoped to shore up his waning authority by unveiling his government's agenda. But it offered little new to the more than 90 Labour lawmakers who have called on him to set a timetable for his departure. They say he would only lead Labour to defeat in the next national election, due by 2029.

He suffered a further blow with a surprise statement from Labour's 11 affiliated unions, which help fund the party, on Wednesday morning. They declared: "It's clear that the Prime Minister will not lead Labour into the next election, and at some stage a plan will have to be put in place for the election of a new leader."

In the preface to the King's Speech, Starmer repeated that the world "today is more volatile and dangerous than at any point in our lifetimes" and that his government had to break with a tradition of looking to the "status quo" for answers.

"This time must be different," he wrote in the preface.

"This King's Speech shows it will be different with a plan to make the country stronger and fairer."

His offer was mostly the formalization of previously announced policies, including an attempt to spur anaemic economic growth by building closer ties with the European Union.

Arriving at parliament from Buckingham Palace in a grand carriage procession, Charles led a ceremony, with some of its traditions harking back to the 16th century, that delivers the government's agenda in line with Britain's constitutional division of powers.

The implementation of those bills remains as uncertain as Starmer's political future; if he were to be ousted, his successor would not be bound to follow the same plan.