UK's Starmer dismisses leadership threat as rival stokes talk of challenge

By Andrew MacAskill

LONDON (Reuters) -British Prime Minister Keir Starmer said on Thursday he was focused on "economic stability" after one of his party's mayors said he had been privately encouraged to launch a leadership challenge following criticism of the government's record.

Andy Burnham, the Labour mayor of Greater Manchester in northern England, said Starmer had no clear plans to turn the country around, and lawmakers in Britain's parliament urged him this summer to stand against the prime minister.

Burnham set out his own vision for Britain this week including more left-wing policies, such as tax increases on the wealthy and large-scale nationalisations, saying that Britain should not be "in hock" to bond markets.

In his first public response to Burnham's criticism, Starmer said he would not comment on "the mayor's personal ambitions" but listed what he said were his government's main achievements, including millions of extra appointments in the state-run health service.

Starmer emphasised his government's commitment to self-imposed fiscal rules, limiting the amount Britain will borrow to try to build the confidence of markets, telling ITV Granada "economic stability is the foundational stone of this government".

Starmer has faced the most difficult weeks of his premiership little more than a year after winning one of the largest election victories in modern British history. The forced departure of his deputy prime minister and ambassador to United States this month has led to speculation he could be replaced.

Burnham, who is widely seen as one of Starmer's biggest rivals, did not deny in interviews with British media this week that he was interested in the Labour leadership, which he has tried and failed to win on two previous occasions.

But Burnham faces a number of obstacles if he want to formally challenge Starmer.

Burnham is not currently a member of parliament, a requirement for being prime minister, so would have to find a parliamentary seat. He would then need to defeat rival parties to do so, a challenge given Labour's current declining popularity.

Starmer's party is currently trailing Nigel Farage's populist Reform UK by about 10 points in opinion polls.

Burnham stood unsuccessfully to be Labour leader in 2010 and 2015 when he was defeated by Ed Miliband and Jeremy Corbyn.

(Reporting by Andrew MacAskill; editing by Michael Holden)