At Labour Party conference, PM Starmer's rival steals the limelight

By Andrew MacAskill

LIVERPOOL, England (Reuters) -British Prime Minister Keir Starmer hopes to use his Labour Party's annual conference to reset his ailing political brand, but immediately faced sharp criticism from one of his main internal rivals over the direction his government is headed.

Andy Burnham, Labour mayor of Manchester, told a packed event on the sidelines of the first day of the conference that the party's leadership was presiding over a "culture of fear" and there should be more room for debate.

Burnham stoked speculation he could challenge Starmer for the party leadership last week, when he set out a more left-wing vision for Britain, including policies such as tax increases on the wealthy and large-scale nationalisation, and said Britain should not be "in hock" to the bond markets.

Starmer and his finance minister Rachel Reeves are under pressure to raise living standards without breaking self-imposed fiscal discipline, with some long-term borrowing costs hitting their highest levels since 1998 in early September.

STARMER RESET DERAILED BY INSURGENT MAYOR

While Burnham's attack - widely seen as a thinly veiled leadership pitch - has angered some in the Labour Party, he said those who wanted him to express loyalty to the prime minister did not appreciate the scale of the government's challenge.

To people "making calls for simplistic statements of loyalty, well, I say if that closes down the debate we need, I think it's at risk of underestimating the peril the party is in," Burnham said in comments that were punctuated by applause and cheers from the audience.

Burnham faces a number of obstacles if he wants to formally challenge Starmer and force a change in direction.

He is not currently a member of parliament, a requirement for being prime minister, so would have to find a parliamentary seat to contest, and there is no guarantee he would win one given Labour's declining popularity.

Even then, Labour Party rules also require a high threshold of support from fellow legislators for a challenger to force a leadership vote.

POWERFUL REGIONAL LEADER DUBBED 'KING OF THE NORTH'

For Starmer looking to regain his authority and show he can unite Britain's fractured electorate after a summer when Nigel Farage's anti-immigration Reform UK party built up a commanding lead in the polls, Burnham's appearance as a gleeful insurgent is nonetheless unhelpful.

Burnham insisted his recent interventions have not been about "personal ambition", but starting an "open debate" about the direction of the party before potentially difficult local and devolved elections in Scotland and Wales next year.

The next national election does not have to be held until 2029.

At an event where he was only meant to speak for two minutes on electoral reform, Burnham joked about the large audience who had come to listen to him.

"It is wild how popular PR (proportional representation) has become," he said. "It is great to see everybody."

Burnham ended up speaking for around 15 minutes and touched on problems with housing, the bond markets, and the privatisation of utility companies.

The 55-year-old, who has twice run unsuccessfully for the party leadership, is the most powerful Labour politician outside London after establishing an election-winning base in the northwest of England as mayor of Greater Manchester.

During campaigning to secure more money for local communities during the COVID-19 pandemic, he was dubbed the "King of the North" by the media.

Starmer dismissed speculation on Sunday about the possibility of facing a leadership challenge from Burnham.

"Comments about leaders and leadership are part and parcel of being in politics. It is the bread and butter of politics," he said. "It's in the job description. I don't focus on that."

(Reporting by Andrew MacAskill; Editing by Alex Richardson)