Labour is expected to be plunged into a three-way battle for control of the party and the country tomorrow as Wes Streeting finally challenges Sir Keir Starmer for power. The Prime Minister went on the offensive tonight, warning MPs that he will fight any attempt by the Health Secretary to kick him out of No10 and it would paralyse the country.
They are also expected to be joined in the fight by a challenger from the Left of the party - and it could be former party leader Ed Miliband. The Net Zero Secretary has been tipped with a run if Greater Manchester mayor Andy Burnham cannot find a Westminster seat in time to run himself. It would be an astonishing pitch for the top job by an MP derided when party leader more than a decade ago, whose green agenda is seen as divisive.
Starmer's Defensive Stance
The Prime Minister and his allies are understood to have been holding meetings with rebellious backbenchers in Parliament this afternoon, ahead of an expected move by the Health Secretary tomorrow. They are said to have laid out the chaos that would ensue from any challenge, with the Government unable to achieve anything for months while politicians are distracted by the campaign.
But reports suggest Mr Burnham has found a Labour MP willing to quit their Westminster seat to allow him to run. He could announce his own campaign as soon as tomorrow, although he would still need a by-election to be called in time for him to take part.
King's Speech Tensions
Wes Streeting raised his eyebrows awkwardly as the PM used his King's Speech response to make a pointed reference to people assembling 'lists of MPs'. Wes Streeting has told allies that he is ready to resign and pull the trigger on a challenge as soon as tomorrow. It came after Mr Streeting squirmed uncomfortably in a packed Commons as Sir Keir poked fun at his coup attempt.
The Health Secretary raised his eyebrows awkwardly as the PM used his King's Speech response to make a gag about people assembling 'lists of MPs'. That was an unsubtle reference to the rolling tally of backbenchers calling for his resignation - now well over 90. The surreal exchange came with Mr Streeting poised to pull the pin on the Labour leadership grenade by quitting tomorrow to launch a challenge.
Market Fears and Political Fallout
Experts have warned of market panic over the chaos at the heart of Government. There are fears that interest rates on gilts - the main way the Government borrows money - and sterling could 'move rapidly into crisis territory'. Mr Streeting's bid to unseat the premier ramped up after they had a brutally short 16-minute meeting in No10 this morning.
Sir Keir said: 'The gracious speech was brilliantly proposed by my honourable friend, the member for Bradford West (Naz Shah). Members across the House will have read her remarkable new book. Her list of endorsements is truly impressive, reaching well over 100 members – at last, a list that we could all get behind.'
In a sign of the PM's weakness, Downing Street said he had 'full confidence' in Mr Streeting this afternoon despite the obvious plotting. The Cabinet minister was notably absent from the frontbench in the Commons as MPs waited for the King to arrive earlier, with Sir Keir flanked by Home Secretary Shabana Mahmood and Rachel Reeves. He later appeared standing by the Speaker's chair, and filed through to the Lords to watch the Speech next to Tory James Cleverly.
Opposition Attacks
Kemi Badenoch launched a merciless assault on the Labour shambles in her response to the Speech. Taking aim at Mr Streeting, she said: 'Why don't you just do your job?' 'All we have is a load of re-announced policies. Hounding our brave veterans through the courts, legislating for digital ID, a policy they told us they dropped, banning trail hunting, just more class war that makes no one's life better, scrapping NHS England, something the Prime Minister announced 14 months ago,' she said. 'But then I suppose the Health Secretary has been a bit distracted lately, hasn't he? He's chuntering now, why don't you just do your job? Do your job.'
Tackling Sir Keir - who sat flicking uncomfortably through his folder - the Tory leader said: 'I know the convention is for this to be a light-hearted debate, but as I have already said, this is a highly unusual moment. The Prime Minister is in office, but not in power. Everyone is trying to pretend it's all right. It's not all right.'
King's Speech Content
The King's Speech package of 35 Bills - and several draft Bills - includes moves to cosy up to the EU, as well as boost the push for Net Zero. However, there is no fresh attempt slated to curb benefits spending - after mutinous MPs crashed the last one. There is also only a passing mention of 'sustained' defence spending increases, with no timetable for publishing the long-awaited investment plan. And questions have been raised over the lack of references to Home Secretary Shabana Mahmood's settlement rights overhaul - which has infuriated many of Sir Keir's critics.
Among the measures in the Speech today: An EU Partnership Bill would give ministers sweeping powers to adopt Brussels rules without the Commons voting; A Peerages Removal Bill could see Peter Mandelson targeted to have his title formally taken away; The Government has again committed to a 'conversion practices' Bill, but only a draft rather than full legislation; Net Zero measures feature heavily in a win for Ed Miliband - seen as a key powerbroker in the Labour leadership struggle.
Union Pressure
The party's union paymasters waded into the row this morning, releasing a joint statement calling for a more Left-wing agenda. '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,' the affiliated unions said. Ominously for Sir Keir, the next batch of Mandelson documents is due to be released as early as next week.
Manchester mayor Andy Burnham and Angela Rayner are both circling as the question of who will succeed Sir Keir dominates MPs' discussions. Nigel Green of financial advisory group deVere said: 'Should Wes Streeting resign tomorrow and launch a leadership challenge, gilts and sterling could move rapidly into crisis territory. The markets hate uncertainty, but they hate political vacuum even more. A Cabinet resignation followed by a leadership fight would signal that the government is losing control of itself while investors are already questioning the country's fiscal direction.'
