LONDON — Prime Minister Keir Starmer will deliver a speech in London on Monday addressing growth, energy, defence and Europe, as about 40 Labour MPs called on Sunday for him to set a date to step down. The speech is intended to halt speculation about his premiership.

Starmer will say, "To meet the challenges that our country faces, incremental change won't cut it," and will add, "On growth, defence, Europe, energy – we need a bigger response than we anticipated in 2024, because these are not ordinary times."

The speech follows recent local elections in which Labour lost 1,500 councillors and control of about 40 councils, with support shifting to Reform UK and the Greens. No ministers have resigned from the government so far.

Wes Streeting and Angela Rayner each began positioning themselves for a Labour leadership contest. Streeting told Downing Street that he is preparing for a leadership contest but does not plan to challenge Starmer immediately. One ally of Streeting said, "Wes isn't going to challenge Keir but he is preparing in case it all falls apart."

Angela Rayner, the former deputy prime minister, warned Starmer he needed to "meet the moment" and set out her prescription for change. She also said, "What we are doing isn't working, and it needs to change. This may be our last chance."

Rayner backed Andy Burnham's return to parliament, saying he would be the leading candidate to replace Starmer if he could run for a seat. Catherine West is seeking 80 supporters among Labour MPs to trigger an immediate leadership contest if Starmer does not set a timetable to resign.

Education Secretary Bridget Phillipson said, "It would be wrong to remove the prime minister, even though voters had given the party a real kicking at the ballot box and people felt bitterly let down." Many supporters of Burnham called for Starmer to set a date to step down to pressure him into resigning.

The Labour Growth Group plans to present a blueprint for a new economic settlement to Downing Street and the party, calling for a higher capital gains tax to fund a 2p cut to national insurance. Starmer has appointed Gordon Brown as an adviser on finance and Harriet Harman as an adviser on women and girls.