Wes Streeting has told Keir Starmer to resign this week to clear the way for a leadership contest.

The former health secretary said it was time to end the ‘drift and uncertainty’ at the top of the top of the Labour government.

He called on the Prime Minister to set out an immediate timetable for departure if Andy Burnham wins the Makerfield by-election on Friday.

‘When the results are in, I hope the prime minister will at that stage reflect on his own position and set out a timetable.

‘I think that would be a better way forward for everyone.’

Allies of Mr Burnham hope to persuade Sir Keir to go quietly.

But Sir Keir has again insisted he will fight any challenge to his leadership, despite 100 Labour MPs declaring they have lost confidence in him.

Speaking to Time Radio at the G7 summit in France, the PM said: ‘I've been very clear throughout this that we won a significant general election result in 2024 with a mandate to bring about change.

‘I'm not going to walk away from that so I will fight if there's a challenge. I don't think there should be a challenge.’

Mr Streeting, who quit the cabinet last month, insisted he has the support of the 81 Labour MPs needed to trigger a leadership contest. And he indicated he will try to ensure a contest even if Sir Keir does a deal with Mr Burnham to stand down.

Mr Streeting acknowledged that a Labour leadership contest could descend into a damaging slinging match that resulted in a ‘Dutch auction’ of unaffordable promises.

But, asked if he could step aside to allow Mr Burnham a coronation, he told the Mail: ‘I think we are better off if our ideas are tested and there is that kind of genuine contest. I think the Labour Party will be better served… it doesn’t have to be a bitter contest.’

He added: ‘I’ve been extremely clear about this. I think there should be a contest. I have every intention of standing in that contest.’

Delivering a speech on the economy in the City of London, Mr Streeting took several swipes at Mr Burnham’s left-wing agenda.

The Greater Manchester Mayor has triggered alarm in the financial markets about a potential spending spree by suggesting he does not want to be ‘in hock to the bond markets’.

But Mr Streeting insisted Labour could find a way to grow the economy without abandoning its fiscal discipline.

“Bond markets are not Bond villains and fiscal rules matter,’ he said. ‘The choice is not between helplessness and recklessness.

‘Markets are rational actors. Give them a plan for growth they can have confidence in, and we’ll see the benefits in gilt yields coming down and minimise the wasteful spend on debt interest.

‘For social democrats, discipline is not a surrender of ambition. It is how we fund our ambition.’

Mr Streeting said the UK’s tax burden had grown ‘too high’ under Labour – and indicated he would act to reduce taxes on work, initially funded by higher taxes on capital gains.

The would-be leadership contender also suggested he would ditch Ed Miliband’s controversial goal of switching entirely to renewable energy by 2030.

He said the immediate focus should be on ‘cheap energy’ to help business and ease the cost of living.

Mr Streeting also indicated he would fast-track negotiations with Brussels about a closer relationship with the EU, saying that Labour’s ‘red lines’ on free movement and membership of the single market and customs union could be torn up after the next election.