Sir Keir Starmer’s allies have warned Labour MPs that an attempt to topple the prime minister would wreak havoc on the economy after days of turmoil that hit sterling and rattled investors fearful of a shift to the left.
In a sign of their alarm at the threat to Starmer’s leadership over his handling of the Lord Peter Mandelson scandal, the prime minister’s supporters invoked the risk of a Liz Truss-style surge in interest rates if he was pushed out of office.
“Volatile bond markets make leadership challenges extremely costly for the country; it would be totally irresponsible,” said one close ally of Starmer, who expressed concern at the prospect of the party membership deciding the next prime minister.
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