Sir Keir Starmer today faces a crunch moment with reports over the weekend suggesting he will resign as Prime Minister.
The Prime Minister will set out timings for his exit in a speech today, according to The Observer newspaper, after his grip on power slipped following several policy U-turns, the Mandelson scandal and a recent string of resignations.
He was told by Cabinet ministers, Number 10 advisers and senior party figures that his position was untenable, according to the report.
Foreign secretary Yvette Cooper, home secretary Shabana Mahmood, energy secretary Ed Miliband and Transport secretary Heidi Alexander are all understood to have called for Starmer to lay out a timetable for his departure.
On Sunday afternoon, President Trump posted a statement on Truth Social claiming “Keir Starmer will resign as Prime Minister”.
He added: “He failed badly on two very important subjects – immigration and energy (open North Sea oil!). I wish him well!”
The resignation would mark the sixth Prime Minister in 10 years as well as the shortest-living Labour Prime Minister in history.
Dire local election results in May for Labour, MPs’ backing for Burnham’s return to parliament and a row over funding for defence spending with the former Cabinet minister John Healey have added to the pressure on the Prime Minister.
Burnham will officially take his post as the new MP for Makerfield following his by-election win last week, where he picked up more than half of the vote share.
In his victory speech Burnham urged his party to act now to change and win back support, saying there would be no second chance.
“Everyone knows that politics isn’t working. Everyone can feel that the country isn’t where it should be. Tonight could, just could, be the turning point,” he said.
In a direct warning to Labour MPs he said: “I do say to my own party: this is a final chance to change.”
We’ll be bringing you all the political developments live throughout the day. For the latest market reaction, head to our markets liveblog here.