British Health Secretary Wes Streeting resigned on Thursday to call for a leadership contest within the Labour Party, accusing Prime Minister Keir Starmer of overseeing political drift and forcing others to take blame. His decision comes after days of increasing pressure from Labour lawmakers demanding Starmer's resignation.

The move by Streeting intensifies the ongoing crisis facing Britain’s governing Labour Party, which has suffered disastrous results in recent local elections. Just under two years since Starmer won a large majority on promises of stability and ending political chaos, the party now faces its latest challenge.

In his resignation letter, Streeting it was "now clear you will not lead the Labour Party into the next general election." He emphasized the need for a debate about what comes next to be based on ideas rather than personalities or factionalism. However, he did not trigger a formal contest immediately.

The criticism from Streeting was particularly sharp, accusing Starmer of leading with vision and direction but instead allowing others to take responsibility for his government's failures. This came as Starmer had hoped to address the resignation demands in his speech on Monday.

Despite the pressure mounting on Starmer, he has repeatedly he would fight to keep his job. Sources close to him say he is determined not to face a leadership challenge from Streeting or other senior ministers on the left of the party.

While potential candidates for the Labour leadership race are emerging, including former deputy Angela Rayner and Greater Manchester mayor Andy Burnham, Starmer still has supporters within his ranks. His finance minister, Rachel Reeves, warned lawmakers against plunging the country into chaos at a time when Britain's economy is turning around.

The prospect of another leadership contest to choose what would be Britain’s seventh prime minister in less than ten years has angered business leaders who warn it will deter investment and harm the nation's economic prospects. The political instability caused by this crisis has pushed borrowing costs higher, with some investors concerned about the potential election of a more left-wing Labour government.

Nick Rees, head of macro research at Monex Europe, London, commented that Streeting’s resignation moves the country closer to a leadership challenge but the exact number of steps between now and any contest remains uncertain.