Keir Starmer placed his faith in a move to nationalise British Steel alongside a drive to drawback from Brexit as he fought on Monday for a political future amid calls on him to quit.
Mr Starmer is under pressure following Labour’s defeats in local elections last week. In what is the most important speech of his time as Britain’s Prime Minister, he said “incremental change won’t cut it”.
“I will never give up on the hope we can unlock in this country — the hope of renters for security in their homes, of workers for fairness at work, of public services free from austerity, the hope of European solidarity, of community pride, of people who paint over racist graffiti, a country taking control of its future,” he said.
The urgency to revive his government’s fortunes has been heightened by Labour’s poor performance in the local elections, where the full extent of its loss of support became clear over the weekend.
That prompted former minister Catherine West to say she would launch a leadership challenge on Monday if no cabinet members stepped forward, in a “stalking horse” bid to unseat the Prime Minister.
Mr Starmer is hoping to avert such a move by using his speech to reset his government - for a fourth time in two years - by breaking his red lines and seeking closer alignment with the EU.
Former deputy leader Angela Rayner, a potential leadership challenger, has warned he would face a challenge unless he took “immediate action” to move the party closer to the left. However, Ms Rayner is under investigation over her tax affairs and resigned last year. She would also be seen by parts of the electorate as too left-wing to lead Britain in the current climate.
A more centrist contender is Health Secretary Wes Streeting, who is respected but also seen as close to the former Washington ambassador and Labour figure Peter Mandelson.
The most popular figure to succeed Mr Starmer is Manchester mayor Andy Burnham, although he is not an MP. There is speculation that a supportive MP could resign to trigger a by-election to return him to parliament. MPs speaking about a “timetabled” transition are widely seen as Burnham supporters, including Energy Secretary Ed Miliband.
All of that could become irrelevant if Mr Starmer’s speech convinces MPs that now is not the time for a leadership change. The party is also aware of the instability caused by Conservative leadership turmoil under Boris Johnson and Liz Truss, which remains fresh in political memory.
Unlike the Conservatives, who can remove a leader through private letters of no confidence, Labour MPs must publicly declare their position. Leadership contenders also require the backing of 20 per cent of MPs - currently 81 - to enter a contest.
Mr Starmer has indicated he would stand against any challenger, a move that could strengthen his position if he prevails.
Pressure may also ease in the coming days with the King’s Speech on Wednesday, when the government will set out new legislation.
Some MPs may judge a leadership battle too risky given global instability and economic pressures, with three years remaining before the next general election. They also face the challenge of countering the rise of Nigel Farage’s Reform UK party, which performed strongly in the local elections.
However, that optimism may prove misplaced, and a shift further to the left could risk electoral damage.
For Mr Starmer, the challenge is to overcome voter dissatisfaction and convince the public he can lead the country out of political and economic uncertainty.
