Political turmoil rattles emerging markets as election risks mount
Political turmoil rattles emerging markets as election risks mount
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Political turmoil rattles emerging markets as election risks mount
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May 10 (UPI) — British Prime Minister Keir Starmer’s job was hanging in the balance Sunday in the aftermath of the worst local council election results for his Labor Party in its long history, analysts said.
Political rivals were circling around the prime minister after the ruling party’s support on councils in England and in devolved Parliaments in Scotland and Wales collapsed in Thursday’s voting, leave the right-wing Reform UK and left-wing Green Party as the biggest electoral winners.
In what was termed a “total bloodbath,” a “calamity” and a “wipe-out,” Labor was voted out of power in 40 local councils, losing about 1,500 councilors along the way, with the vast majority of the seats being seized by Nigel Farage’s Reform UK.
Starmer’s party also lost the Welsh Senedd to Plaid Cymru, surrendering its control of the body for the first time since the Welsh parliament was created in 1999.
The results came during what is essentially the mid-point of the Starmer government’s five-year term following Labor’s lopsided victory over the Conservative Party in 2024, and he vowed on Friday that he would not stand aside.
Labor, he said, was elected to meet the challenges faced by everyday Britons “and I’m not going to walk away from those challenges and plunge the country into chaos.
“I led our party to that victory, that is a five-year mandate to change the country. It was a five-year term I was elected to do, I intend to see that through.”
But the scale of last week’s losses have prompted calls for the prime minister’s resignation. As of Sunday, more than 40 Labor members of Parliament have publicly called on him stand aside.
“It is clear that Keir has fought his last election as Labor leader and, deep down, he will know it,” Labor MP Richard Burgon said in a statement. “The party should now work towards a timetable for an orderly transition to a new leader by the end of this year.”
“When you’re the leader, the buck stops with you,” Labor MP David Baines told the BBC. “There’s no doubt his popularity has plummeted and we’ve heard it on the doorstep.”
Starmer’s main party rivals spent Sunday voicing warnings that he rethink his determination to hang on to power ahead of what will likely be a “make-or-break” speech on Monday in which the prime minister is expected to outline sweeping changes to his government’s direction.
Angela Rayner, Starmer’s former deputy prime minister, issued what amounted to an ultimatum that he avoid mere “policy tweaks” and instead implement a sharp progressive turn to win back voters who are deserting Labor for the Green Party.
“The prime minister must now meet the moment and set out the change our country needs,” she said. “Change our economic agenda to prioritize making people better off, change how we run our party so that all voices are listened to, and change how we do politics.
“Labor exists to make working people better off. That is not happening fast enough, and it needs to change — now.”
Meanwhile, Health Secretary Wes Streeting has told Starmer he is preparing to make a bid for the top job should the prime minister resign or be forced from office, The Telegraph reported Sunday.
The favorite candidate of the “soft left,” Greater Manchester Mayor Andy Burnham, has been blocked by Labor’s National Executive Committee from standing as a parliamentary candidate in a move engineered by Starmer in January.
But Rayner on Sunday called for Starmer to lift Burnham’s ban in the greater interests of the party and the country.
Keir Starmer is facing renewed calls for resignation after fresh revelations surrounding the appointment and vetting of former UK ambassador to the United States Peter Mandelson. The controversy has reignited scrutiny over governance standards inside the Labour government, coming at a politically sensitive time just months after Labour’s landslide election victory in 2024.
The Vetting Controversy:
The core of the scandal centres on reports that Mandelson did not properly pass security vetting before being appointed as ambassador. Despite this, official communications suggested that clearance had been confirmed. Downing Street has since dismissed a senior Foreign Office official, intensifying questions about how the appointment was handled and who within government was aware of the vetting status.
Political Fallout Inside Government:
The issue has exposed tensions within the Labour Party, with some lawmakers expressing concern over administrative failures while others defend the Prime Minister. Senior minister Darren Jones said Starmer was “furious” about not being informed of the vetting issues, while acknowledging serious breakdowns in communication between departments.
Opposition Pressure and Leadership Questions:
Opposition figures, including Conservative leader Kemi Badenoch, have accused Starmer of misleading Parliament and questioned his credibility. The central allegation is whether the Prime Minister knowingly misrepresented the status of Mandelson’s clearance when defending the appointment. These accusations have intensified calls for resignation from political rivals.
Wider Political Context:
The controversy comes at a politically sensitive moment for Starmer, as Labour prepares for key local elections across England, Scotland, and Wales. The government is also managing broader foreign policy challenges, including Britain’s positioning in global conflicts involving the United States and Middle East tensions, adding further pressure on leadership stability.
Institutional and Governance Concerns:
Beyond individual accountability, the scandal has raised broader concerns about administrative competence within the Foreign Office and Downing Street. The dismissal of senior officials has highlighted breakdowns in communication and vetting procedures, raising questions about how high-level diplomatic appointments are approved and overseen.
Analysis:
The Mandelson vetting scandal has evolved from a procedural controversy into a wider test of political authority and administrative control for Starmer. While there is no clear evidence yet that the Prime Minister deliberately misled Parliament, the perception of mismanagement and lack of oversight has created significant political vulnerability.
At its core, the issue reflects a deeper challenge of governance: maintaining institutional trust while managing complex bureaucratic systems. Even if the government survives immediate calls for resignation, the damage is likely to linger, particularly if further inconsistencies emerge. With elections approaching and internal party tensions rising, Starmer’s ability to project control and competence will be central to whether this episode becomes a temporary setback or a longer-term political liability.