Labour MPs are convening in Liverpool for the annual party conference as Sir Keir Starmer strives to launch a comeback against dismal polling and challenges to his leadership. The prime minister has vowed to use the four-day event to demonstrate that Labour can provide an alternative to the "toxic divide and decline" advocated by Reform UK, framing this as "the battle of our era."
Sir Keir is facing pressure following two polls forecasting that Nigel Farage’s party will emerge victorious in the next general election, as voters increasingly reject mainstream politics. This adds to the woes of the beleaguered prime minister, who has been embroiled in a series of scandals involving his top team, amidst speculation that Greater Manchester Mayor Andy Burnham may consider a leadership bid.
Over the next four days, discussions at the conference are expected to revolve around how Labour can effectively counter Reform, and whether Sir Keir is the right person for the job. There is widespread speculation that Mr. Burnham might challenge for leadership, with many backbenchers cautiously suggesting that Sir Keir’s downfall is not a matter of if, but when, and considering Mr. Burnham or Health Secretary Wes Streeting as potential replacements. However, there remains a hope among them that the prime minister can turn things around before the upcoming local elections in May.
On a positive note, Unite, Labour’s largest union funder, has threatened to sever ties with the party unless there is a change in direction. In response, there are indications from senior ministers that the government might use the conference as a platform to abolish the contentious two-child benefit cap, a move supported by over 100 Labour MPs, both deputy leadership candidates, and prominent figures like Mr. Burnham and former Prime Minister Gordon Brown. Notably, two MPs previously suspended for opposing the measure, John McDonnell and Aspana Begum, had their whip reinstated.
In terms of key announcements, Housing Secretary Steve Reed is set to kick off the conference by pledging to build three new towns before the next election. The government has also announced underwriting a £1.5 billion loan guarantee to Jaguar Land Rover to support the company during a shutdown following a significant cyber attack.
Chancellor Rachel Reeves is advocating for a new youth mobility scheme and improved trading relations with the EU to potentially avert the need for tax hikes in the upcoming budget. Additionally, Home Secretary Shabana Mahmood has signaled a shift in immigration policy, proposing that foreigners must demonstrate their social contribution before being permitted to settle in the UK.
While the conference progresses, it is crucial to note that Sir Keir’s allies have expressed support for him, with Business Secretary Peter Kyle highlighting the positive reception the prime minister has received at recent events. Sir Keir is scheduled to address the conference on Tuesday, with speeches from cabinet ministers, including Chancellor Rachel Reeves, set for the event.