Starmer Faces Cabinet Revolt as UK Political Crisis Deepens
UK Prime Minister Keir Starmer faces the most severe test of his leadership yet, CNBC reported Tuesday, as senior cabinet colleagues and dozens of his own MPs demand he step down.
Cabinet Turns on Its Own Leader
The pressure on Starmer intensified dramatically on Monday. Home Secretary Shabana Mahmood is among cabinet ministers who have reportedly urged him to set out a timeline for leaving Downing Street. More than 70 Labour MPs have publicly called for his resignation. Several junior ministerial aides have also quit, deepening the sense of internal collapse.
A speech by Starmer on Monday, intended to steady the ship, failed to silence his critics. The rebellion has now reached the upper echelons of government in a way that is difficult to contain.
Khan Warns of Election Wipeout
London Mayor Sadiq Khan told CNBC the party had not acted with sufficient boldness or courage. He stopped short of calling for Starmer’s removal but warned that Labour risks a severe defeat at the next general election. Khan also used the moment to push for a broader policy shift. He called on Labour to commit to rejoining the European Union at the next election, describing Brexit as the most damaging act of economic self-harm ever undertaken by a modern democracy.
A Crisis With the Worst Possible Timing
The political turmoil arrives at a particularly awkward moment. The King’s Speech, which will outline the government’s legislative agenda, is scheduled for Wednesday at the state opening of parliament. A leadership in open revolt makes that programme harder to sell to the public and to parliament.
The broader international backdrop also complicates Starmer’s position. Oil prices climbed Monday after US President Donald Trump described the Iran ceasefire as “unbelievably weak” and rejected Tehran’s latest counterproposal as worthless. Higher energy costs are unwelcome for a government already struggling with cost-of-living pressures.
Markets Diverge as UK Uncertainty Grows
European equity futures pointed lower Tuesday morning, reflecting unease over both UK political risk and the fragile Iran situation. Asian markets were mixed. Wall Street, by contrast, continued to push higher. The S&P 500 and Nasdaq both closed at record highs on Friday, buoyed by strong tech earnings and renewed enthusiasm for artificial intelligence investment.
Wedbush Securities analyst Dan Ives told CNBC he expects the Nasdaq to reach 30,000 within a year, citing AI demand that outpaces supply by a ratio of ten to one.