British energy minister Ed Miliband has told cabinet ministers he would be prepared to run for the Labour Party leadership if health minister Wes Streeting moved to trigger an imminent contest, the Times newspaper reported on Tuesday.

The Times said Miliband later denied he was actively planning a leadership bid. Miliband did not immediately respond to a Reuters request for comment.

Prime Minister Keir Starmer is facing growing pressure from within his own party following a heavy defeat in local elections, with more than 80 MPs calling for him to step down.

Starmer on Tuesday rejected mounting calls to resign, telling ministers he would continue governing despite what he described as a “destabilising” period for the government following Labour’s heavy losses in local elections.

At a cabinet meeting, the British prime minister acknowledged responsibility for one of Labour’s worst electoral performances in recent years but stressed that no formal leadership challenge had been launched against him.

“The Labour Party has a process for challenging a leader and that has not been triggered,” Starmer told ministers, according to Downing Street. “The country expects us to get on with governing. That is what I am doing and what we must do as a cabinet.”

The crisis deepened as more than 80 Labour MPs publicly called for Starmer to announce a timetable for his departure. Jess Phillips became one of four junior ministers to resign on Tuesday, criticising what she described as Starmer’s “timid style and incremental approach”.

Her resignation added to growing unrest within Labour ranks following a difficult period marked by scandals, policy reversals and declining support inside the party.

Attention has now turned to senior Labour figures seen as possible successors, including Health Secretary Wes Streeting, who is widely viewed as harbouring leadership ambitions. However, no senior minister has yet moved openly against Starmer.

Deputy Prime Minister David Lammy publicly backed the prime minister after the cabinet meeting, dismissing calls for him to step aside.

“It’s been 24 hours now and nobody has come forward to put themselves forward in the processes that exist in the party,” Lammy said. “No one seems to have the names to stand up against Keir Starmer.”

Financial markets also reacted nervously to the political uncertainty, with British borrowing costs rising sharply amid fears of renewed instability in government. Starmer acknowledged the impact, telling ministers the “past 48 hours have been destabilising for government and that has a real economic cost for our country and for families”.

Labour rules make it difficult to remove a sitting prime minister without significant internal backing. At least 81 Labour MPs would need to unite behind a single challenger to trigger a leadership contest.

While dissatisfaction with Starmer has spread across different factions of the party, divisions remain over who could replace him. Possible contenders include Streeting, Greater Manchester Mayor Andy Burnham and former deputy prime minister Angela Rayner, though each faces political obstacles.

Starmer came to power in 2024 after leading Labour to a landslide general election victory on promises of stability following years of Conservative turmoil. Less than two years later, he is now facing the most serious challenge of his premiership.

Despite the pressure, allies insisted on Tuesday that the prime minister remained focused on governing and preparing the government’s legislative agenda ahead of the King’s Speech later this week.