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Britain's Prime Minister Keir Starmer delivers a speech at the Coin Street Neighbourhood Centre in Waterloo, London, on Monday.James Manning/The Associated Press

British Prime Minister Keir Starmer has vowed to move the U.K. closer to the European Union as part of a wider effort to resuscitate his flagging leadership, but calls for him to resign have only grown louder among his own Labour MPs.

In a speech Monday that was widely seen as a last-ditch effort to save his job, Mr. Starmer acknowledged the dissension among backbenchers but refused to step down.

“I know that people are frustrated by the state of Britain. Frustrated by politics, and some people frustrated with me,” he told a group of supporters and journalists in London. “I know I have my doubters, and I know I need to prove them wrong. And I will.”

Dressed casually in shirtsleeves, Mr. Starmer gave an impassioned defence of his government’s record and promised more interventionist policies, such as nationalizing British Steel and a “jobs guarantee” for young people who are out of work.

He also took aim at the proponents of Brexit, notably Reform UK Leader Nigel Farage. The Prime Minister said leaving the EU had not delivered the benefits Brexit backers promised during the 2016 referendum, such as improved economic growth, tighter security or immigration reform. Mr. Farage “took Britain for a ride,” he said.

Mr. Starmer said he plans to “put Britain in the heart of Europe” and move the country closer to the EU on trade, defence and security. “And that will then be a platform on which we can build as we go forward.” He also did not rule out Britain rejoining the EU’s single market and customs union.

It’s not clear if Mr. Starmer’s speech will be enough to quell the brewing caucus revolt.

Despite leading the party to a massive majority less than two years ago in a national parliamentary election, Mr. Starmer has been under increasing pressure to resign because of the sluggish economy and a controversy over the appointment of Peter Mandelson as ambassador to the United States despite his ties to the late convicted sex offender Jeffrey Epstein.

That only intensified after Labour suffered a historic defeat in a series of local elections across England, Scotland and Wales last week.

Keir Starmer faces chorus of calls to resign as Labour Party trounced in local elections

In England, Labour lost nearly 1,500 local council seats of the 2,500 it held, mostly to Reform and the Green Party. It also finished a distant second in the Scottish parliamentary election and lost power in Wales for the first time in more than a century, falling to third place.

More than 60 MPs have called on Mr. Starmer to resign immediately or set out a plan for his departure as leader, according to Sky News. Many said Mr. Starmer’s speech had not changed their minds.

“It is clear the PM does not have a credible plan. He must now set out a timetable for departure,” Labour MP Bell Ribeiro-Addy wrote on X.

Several other MPs offered similar sentiments.

“If we are to make good on the promises we made to the country in 2024 ... then we cannot carry on with the approach we have taken in the first two years of this Labour Government,” Labour MP David Smith wrote on X. “I therefore believe that now is the time for the Prime Minister to set a clear timetable for his departure.”

No sitting Labour prime minister has ever been successfully ousted, mainly because it’s not easy.

A leadership contest can be triggered if 20 per cent of the Labour caucus, which would currently be 81 MPs, nominates a challenger. Mr. Starmer would automatically be allowed to run in a subsequent leadership race, which would also include balloting from affiliated trade unions and party members.

Potential challengers include Manchester Mayor Andy Burnham, former deputy party leader Angela Rayner and Health Secretary Wes Streeting. But they all have drawbacks.

Mr. Burnham is considered the front-runner, but he would have to find a seat in Parliament because the party leader must be an MP. Given last week’s election results, there are fewer safe Labour constituencies for a by-election.

Ms. Rayner, who is an MP, has been struggling to distance herself from a scandal involving her failure to pay the appropriate tax on a house she bought, and Mr. Streeting has been questioned about his ties to Mr. Epstein.

In a speech to a labour union conference Monday, Ms. Rayner said Mr. Starmer “acknowledged the frustration that was expressed last week. But we will be judged on actions and not just our words.”

U.K. Prime Minister Keir Starmer vowed on Friday to fight on after his Labour Party suffered heavy losses in local elections that deepened doubts over his ability to govern, and boosted the anti-immigration Reform party.

Reuters

Despite the difficulties of mounting a challenge, a leadership bid could be coming.

Over the weekend, Labour MP Catherine West said she would try to gather 81 nominations in the hope of firing the starting gun on a race to succeed Mr. Starmer and forcing the front-runners to emerge. On Monday, she backed off the threat but said she would start collecting names of MPs who want a new leader.

Ms. West said Mr. Starmer’s speech “was too little, too late.” She called for a leadership election to be held before September.

The political uncertainty is worrying financial markets and driving up the cost of government borrowing. The yield on 10-year gilts, or bonds, hit 5 per cent Monday as investors ditched them.

“Bond investors have already been worried by the prospect of higher inflation linked to the Middle East conflict, and now they’re starting to squirm in their seat at the idea we might get a different prime minister,” wrote Russ Mould, investment director at London-based AJ Bell.

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