UK Labour MPs are privately urging Angela Rayner and Wes Streeting to launch a leadership challenge against Sir Keir Starmer over the Lord Mandelson scandal, according to the Telegraph on X

• One minister said the situation had become “existential” for Sir Keir, claiming that “basically everyone is urging a leadership challenge” in private.
• The conversations about the Prime Minister’s future are understood to have happened amongst MPs in person on Thursday and on Labour WhatsApp groups.
• The minister told The Telegraph that it is a widespread view amongst MPs and ministers that a leadership challenge should be started, adding that the plotters were now “too many to name”.

The news indicates increasing internal pressure within the Labour Party for a leadership challenge against Sir Keir Starmer due to the Lord Mandelson scandal, which could destabilize the party's position and prospects ahead of upcoming elections. This could create market volatility, particularly in UK gilts, as political uncertainty often correlates with risk aversion among investors and a reevaluation of fiscal strategies. Watch for reactions in risk assets and any implications for government policy direction if a leadership change progresses.