Andy Burnham has declared his intention to run as a Member of Parliament, potentially marking the first step toward assuming leadership of the Labour Party. Makerfield MP Josh Simons has announced his decision to step down, allowing Burnham to enter a by-election and potentially return to parliament after nearly ten years as Greater Manchester mayor.
It is anticipated that the Prime Minister will not oppose Burnham’s candidacy in the by-election, but the Labour Party’s National Executive Committee will need to give their approval during their upcoming meeting. Despite Burnham’s popularity among Labour members, the financial markets have reacted apprehensively to the news of his potential leadership bid.
Following these developments, UK borrowing costs have surged, with 30-year UK government bonds, also known as gilts, rising significantly in Friday morning trading. Additionally, the pound has depreciated against the dollar, reaching a monthly low and experiencing a nearly 2% decline against the dollar in the past week alone.
Amidst the ongoing speculation, Keir Starmer has reiterated his stance to remain in his position unless he loses a leadership contest, focusing on governing amid the global aftermath of the Iran conflict. Starmer’s close ally, Work and Pensions Secretary Pat McFadden, has pledged to support Labour in the Makerfield by-election, emphasizing the political risks associated with triggering two unnecessary elections in Greater Manchester.
McFadden stated his commitment to campaigning for a Labour victory in the by-election, regardless of the candidate, emphasizing the importance of voter engagement in determining the next MP for Makerfield. He highlighted the historical risks of unnecessary by-elections and the significance of voter participation in the democratic process.