Rebel Labour MPs rally behind Andy Burnham as Keir Starmer faces leadership challenge

The Labour Mayor for Greater Manchester has launched a new campaign group calling on the Government to tax wealth, nationalise utility companies, and end the two-child benefit cap.

MPs backing Mr Burnham said "this administration is coming to an end" as they blasted Sir Keir's leadership, adding that the metro mayor can bring much-needed "fresh thinking".

"He [Mr Burnham] really does represent what the Labour Party is about. He's not only demonstrated that across Manchester but the leadership he does give on many issues, I think that's the kind of leadership we need at this time," another told the telegraph.

Mr Burnham is expected to criticise Sir Keir at Labour's annual party conference later this month. He is expected to call for a "reset" to help Labour win the next election.

This comes as the Prime Minister faces growing backlash after the now-sacked US Ambassador Lord Peter Mandelson was revealed to have kept a close relationship with disgraced financier Jeffrey Epstein after he was found guilty of sex trafficking.

Mr Burnham's policy proposals are seen as a challenge from the left to Starmer's Government, which is considered too right-wing by many backbenchers and members.

The new network of Labour members, Mainstream, has been compared to Labour Together, the vehicle that Sir Keir used to win the Labour leadership in 2021.

The creation of the group is seen as the first steps towards a new leadership challenge from the Manchester Mayor.

Mr Burnham's challenge to Sir Keir extends to his support for Lucy Powell in the Labour deputy leadership race rather than the Government's favoured candidate, Education Secretary Bridget Phillipson.

Asked if he would like to see Mr Burnham back in the Commons, Peter Kyle, the Business Secretary, said that he should remain in Manchester.

Mr Kyle said: “Andy’s a real talent. I think he’s doing an incredible job in Manchester. I think Manchester really needs him.

"I like working with him in Manchester. It would be a shame for Manchester to lose him.”

In order to stand as leader, Mr Burnham would have to seek a Commons seat through a by-election.

A likely option could be the Manchester constituency of Gorton and Denton where the MP Andrew Gwynne was suspended in February after sending sexist messages on a WhatsApp group chat.

The Prime Minister is expected to use President Trump's upcoming state visit as a chance to regain political favour since the Lord Mandelson scandal.

Sir Keir will announce on Monday a "landmark" nuclear power partnership with the United States.

It marks his first public appearance since sacking the US ambassador for his ties to Epstein.

Shortly before Sir Keir appointed Mandelson as US ambassador, he had received a report detailing the peer’s relationship with the influential financier, it has emerged.

The PM was warned months ago about the potential diplomatic and reputational risks of the pair’s association.

Despite the briefing, the PM went ahead with appointing Mr Mandelson last December.

Mr Kyle told LBC: “It was public knowledge that Peter Mandelson continued his friendship with Jeffrey Epstein beyond the conviction.

"What was materially different that we discovered in those emails is the depth of the friendship and some of the things that Peter was saying to Jeffrey Epstein. As soon as the Prime Minister discovered that by reading the emails on Wednesday evening, he acted.

“Peter had repeatedly apologised and regretted ever meeting him.“

If we had known then what we know now, he wouldn't have been appointed in the first place.”

Downing Street sources have described Lord Mandelson as being “economical with the truth" when he answered questions about his ties to Epstein prior to his appointment.

The Labour grandee was sacked as the UK’s representative in Washington on Thursday after emails were published showing Lord Mandelson sent supportive messages even as Epstein faced jail for sex offences.

The emails brought to light “new information” and showed “the depth and extent” of Lord Mandelson’s relationship with Epstein was “materially different from that known at the time of his appointment”, Downing Street and the Foreign Office said when his withdrawal from the post was announced.

Mrs Badenoch said in a post on X: “Looks like the Prime Minister and Labour MPs spent the week lying to the whole country about what they knew regarding Mandelson’s involvement with convicted paedophile Jeffrey Epstein.”

She added: “If No 10 had those emails for 48 hours before acting, it means he lied at PMQs and ministers lied again about new additional information. These are yet more errors of judgment."

The emails were sent from an account which had long been closed and were not available during the vetting process.

Emails published on Wednesday included passages in which Lord Mandelson told Epstein to “fight for early release” shortly before he was sentenced to 18 months in prison.

He is also reported to have told Epstein “I think the world of you” the day before the disgraced financier began his sentence for soliciting prostitution from a minor in June 2008.

The scandal has put pressure on Sir Keir, coming within a week of Angela Rayner’s departure and the ensuing Cabinet reshuffle.

It has also brought renewed scrutiny of his chief of staff, Morgan McSweeney, who was reported to have lobbied for Lord Mandelson’s appointment.