Sir Keir Starmer vowed to prove his “doubters” wrong as he fought back against calls for him to quit.
In a speech in Central London on Monday, the Prime Minister said he took responsibility for the results that saw Labour lose almost 1,500 English councillors, go backwards in Scotland and slump to third in Wales.
The results have seen a succession of MPs call for Sir Keir to set out a timetable for his departure, while former minister Catherine West has suggested she would launch a leadership bid.
Facing down those calling for his resignation, Sir Keir said: “I’m not going to shy away from the fact that I’ve got some doubters, including in my own party.
“I’m not going to shy away from the fact that I have to prove them wrong, and I will.”
Sir Keir’s speech comes at a pivotal moment in his premiership, with last week’s election results reigniting speculation about potential challengers.
Ms West has been clear her bid is an attempt to force the Cabinet to get behind a replacement for Sir Keir rather than a credible challenge to win the keys to No 10 herself.
Others within the party have looked towards Greater Manchester Mayor Andy Burnham, saying he should be allowed to return to Parliament.
But Sir Keir would not be drawn on whether he would support Mr Burnham’s return to Westminster, saying it was a matter for Labour’s national executive committee (NEC).
The NEC, dominated by supporters of the Prime Minister, blocked Mr Burnham from contesting the Gorton and Denton by-election earlier this year, with the formerly safe Labour seat going on to be won by the Greens.
As the Prime Minister battled to save his job, Monday’s speech had been billed as setting out sweeping changes needed to tackle the “big challenges” facing Britain.
Sir Keir set out a number of measures including legislation to nationalise British Steel, a ban on “far-right agitators” coming to the UK for a planned march on Saturday and a plan to put the UK “at the heart of Europe”.
He cast the current political moment as a “battle for the soul” of the UK, warning that if Labour failed the country would head down “a very dark path”.
He said: “This is nothing less than a battle for the soul of our nation and I want to be crystal clear about how we will win it because we cannot win as a weaker version of Reform or the Greens.
“We can only win as a stronger version of Labour, a mainstream party of power, not protest.”
A handful of backbenchers spoke up in support of the Prime Minister in the immediate aftermath of the speech, with Macclesfield MP Tim Roca and Gedling’s Michael Payne saying Sir Keir had demonstrated he understood “the scale of the challenge” facing the country.
But others continued to call for his resignation.
North Northumberland MP David Smith, who has been the UK’s special envoy for freedom of religion or belief since 2024, said Labour owed “a debt of gratitude” to Sir Keir but could not “carry on with the approach we have taken” since the general election.
He said: “I therefore believe that now is the time for the Prime Minister to set a clear timetable for his departure.
“This departure should be ordered and dignified; for the PM himself, for the Government but most of all for the sake of the country.”
Meanwhile, UK Government bonds and the pound came under pressure in a largely negative financial market reaction to Sir Keir’s speech.
Yields on 30-year government bonds, also known as gilts, lifted 10 basis points higher to 5.68%, while 10-year gilt yields also back up to just below 5%, up 8 basis points at 4.99%.
Gilt yields move counter to the value of the bonds, meaning their prices fall when yields rise.
Sterling also weakened, falling 0.2% to 1.36 US dollars and was 0.1% down at 1.15 euros.
Responding to the speech, Conservative leader Kemi Badenoch said it was “sad to watch”, adding: “With so many resets, even his reset button needs a reset.
“But I do not take pleasure in watching the Prime Minister flounder.
“The country needs leadership, not another speech from a man who clearly knows something has gone badly wrong, but still can’t explain why.”
Mrs Badenoch also dismissed Labour’s “pretenders jostling for his job”, saying: “They are busy arguing over who should drive the car, but the truth is they are all heading in the wrong direction. They have no vision for the future.”
