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Andy Burnham has claimed Labour MPs are privately urging him to challenge the prime minister, as he unveiled his “plan to turn the country around”.

The mayor of Greater Manchester, who served in Gordon Brown’s cabinet, has been tipped to make a return to Westminster.

Speculation has ramped up amid a rough start to the new parliamentary term for the government, with Sir Keir Starmer forced into a cabinet reshuffle and the sacking of his ambassador to the US.

Speaking to The Telegraph and the New Statesman, Mr Burnham has further fuelled rumours that he is plotting another leadership challenge. He lost to Ed Miliband in 2010 and Jeremy Corbyn in 2015.

“People have contacted me throughout the summer – yeah,” the former minister told The Telegraph when asked if Labour MPs had encouraged him to try again.

“I’m not going to say to you that that hasn’t happened.

“But as I say, it’s more a decision for those people than it is for me.”

He added: “I stood twice to be leader of the Labour Party. And I think that tells you, doesn’t it?”

Burnham says he hasn't spoken to the PM since May. Pic: Reuters
Image:
Burnham says he hasn’t spoken to the PM since May. Pic: Reuters

‘Climate of fear’

He refused to rule out making a challenge before May 2026, widely seen as the point at which some Labour MPs feel Sir Keir’s time could be up – if the party does badly in the next set of local elections.

They include London, while the Scottish and Welsh parliaments are also up for grabs.

In a direct criticism of Sir Keir, Mr Burnham said Number 10 had created a “climate of fear” among MPs and created “alienation and demoralisation” within the party.

The government has already run up against its own backbenchers over issues including welfare cuts, the winter fuel payment changes, and the two-child benefit cap.

A debate continues to rage on tax ahead of the budget, with the chancellor being told significant increases are needed.

Labour remain behind Reform UK in the polls, having seen their popularity plummet since the 2024 general election, while the prime minister is also unpopular with the public.

Despite his previous failed leadership challenges, Mr Burnham has rebuilt his image as a mayor in Manchester.

He notably sparred with Boris Johnson during the pandemic, and became known as the “King in the North”.

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Trevor’s Takeaway: Burnham one to watch

Burnham’s manifesto

Mr Burnham has set out a raft of policies he said would “turn the country around”, including higher council tax on expensive homes in London and the South East.

He would cut income tax for lower earners, but introduce a 50p rate for the highest earners, and borrow £40bn to boost the building of council houses.

He also called for more public control of energy, water and rail, and signalled a willingness to work with progressive parties – including Jeremy Corbyn’s still-unnamed venture.

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Any attempt to replace the prime minister would require him to secure a parliamentary seat in a possible by-election, though the polls suggest no seat would be a slam-dunk victory for Labour.

Mr Burnham will likely use Labour’s party conference, starting Sunday, to make his pitch to members, though should expect hostile briefings from those inside the government.

Speaking to Politics Hub With Darren McCaffrey on Wednesday, Labour peer Thangam Debbonaire said he should “stop sticking his oar in”. “Keir Starmer is our prime minister,” she said, and he should be allowed to get on with the job.

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Political Traitors: Who can you trust?

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Political Traitors: Who can you trust?

👉Listen to Politics at Sam and Anne’s on your podcast app👈

Sam reveals there might be some Traitors-style plotting going on behind the scenes in government – but from who? And how might Sir Keir Starmer see off this challenge?

Budget speculation continues, and specifically – who is and is not a “working person”? And, should it occur, what would the consequences be of breaking a manifesto commitment? How perilous a moment for Starmer could this be?

And after the BBC’s director general and CEO of news resign, what does Starmer now say about the organisation? And who will come next in the top BBC job?

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Stablecoin demand is growing, and it can push down interest rates: Fed’s Miran

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Stablecoin demand is growing, and it can push down interest rates: Fed’s Miran

A growing demand for US dollar-tied crypto stablecoins could help push down the interest rate, says US Federal Reserve Governor Stephen Miran.

The Donald Trump-appointed Miran told the BCVC summit in New York on Friday that the dollar-pegged crypto tokens could be “putting downward pressure” on the neutral rate, or r-star, that doesn’t stimulate or impede the economy.

If the neutral rate drops, then the central bank would also react by dropping its interest rate, he said.

The total current market cap of all stablecoins sits at $310.7 million according to CoinGecko data, and Miran suggested that Fed research found the market could grow to up to $3 trillion in value in the next five years.

Stephen Miran speaking at a conference in New York on Friday. Source: BCVC

“My thesis is that stablecoins are already increasing demand for US Treasury bills and other dollar-denominated liquid assets by purchasers outside the United States and that this demand will continue growing,” Miran said.

“Stablecoins may become a multitrillion-dollar elephant in the room for central bankers.”