Wes Streeting is reportedly preparing to launch a leadership challenge against Keir Starmer.
Streeting is understood to be working to secure the backing of 81 MPs needed to challenge Starmer for the premiership.
Downing Street has insisted that Starmer would fight any challenge and plow ahead with the government’s programme that includes 30 new bills.
Starmer’s allies are urging MPs to consider the disruption a leadership contest could create. A contest could limit the government’s ability (perceived and real) to deliver its agenda. This is one of the major factors that will play into the pricing of the British pound. Uncertainty can breed volatility.
Some MPs have reportedly told Starmer that he should not fight a leadership challenge and instead set a date for his resignation (possibly 2027). This scenario might cause a calmer reaction in the market. The further in the future he sets the date, the calmer the reaction might be.
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