British Prime Minister Keir Starmer gives an update on the situation in the Middle East at Downing Street Briefing Room, in London, Britain, March 05, 2026.
Early results from local council elections pointed to big losses for the U.K.'s ruling Labour Party on Friday, raising questions about Keir Starmer's future as prime minister.
Vote counts pointed to hundreds of Labour councilors losing their seats and the leadership of many local councils changing hands.
The predicted result will not affect the composition of parliament in Westminster or change who is in government, but reflects souring sentiment on Starmer's leadership among the electorate.
Labour and its main opposition party, the Conservatives, are widely expected to suffer heavy losses, while right-wing Reform UK and the left-wing Green party are anticipated to make major gains.
Backbench Labour MPs -- parliamentarians without a position in government -- are reportedly planning to blame looming losses on the prime minister and demand his resignation.
Starmer and his finance minister, Rachel Reeves, have been battling discontent over fiscal policy within their own ranks, while welfare reforms and the appointment of Peter Mandelson -- an associate of the late sex offender Jeffrey Epstein -- as U.S. ambassador, have further damaged inter-party relations.
Health Minister Wes Streeting, former Deputy Prime Minister Angela Rayner and Greater Manchester Mayor Andy Burnham are reported to be among the top contenders to replace Starmer. Rayner and Burnham -- who is currently ineligible to stand as prime minister because he lacks a seat in parliament -- are broadly considered more left-leaning than Starmer.
But markets have been supportive of Starmer and Reeves retaining their positions relative to potential alternatives, with U.K. bonds selling off in previous bouts of uncertainty over their political futures.
Last July, yields on U.K. government bonds -- known as gilts -- surged after Reeves was seen crying in parliament, amid reports that her role in Starmer's cabinet was in jeopardy. It came after the government U-turned on her proposed welfare cuts following a rebellion from Labour politicians.
Yields on benchmark 10-year U.K. government bonds, known as gilts, were 1 basis point higher in early trading in London, as investors awaited further election results. Earlier this week, those yields surged to their highest levels since 2008 amid reports of a planned coup against Starmer from within his own party following the election.