Ed Miliband has allegedly told close allies he is preparing to bid for the Labour leadership if Sir Keir Starmer is ousted as Prime Minister over the Lord Mandelson scandal, according to party insiders.

The Net Zero Secretary is said to believe the route back to Labour’s top job has opened up significantly, with sources telling The Sun that he views himself as the natural standard-bearer for the party’s left.

Mr Miliband is also said to believe Angela Rayner would struggle to launch a credible leadership bid while the investigation into her tax affairs remains unresolved.

One Labour source told The Sun said: “Ed is preparing to run again. He has told people, despite what he says when he is interviewed.”

The insider added: “From his point of view it makes sense. Angela’s tax investigation is ongoing. It is a really hard sell to say let’s replace one scandal ridden PM with another.”

They continued: “He has told friends he is going to run as the leader who can bring down the cost of living which is quite ironic because that’s what Keir Starmer has been trying to do.”

Mr Miliband is also said to admire the political style of New York’s newly elected mayor Zohran Mamdani, viewing the left-wing Democrat’s messaging and social media presence as a model for a future leadership campaign.

The veteran Labour figure previously led the party for five years after defeating his brother David in the 2010 leadership contest.

However, his leadership failed to deliver power, with Labour losing the 2015 general election to David Cameron’s Conservatives.

Despite claims from party insiders, Mr Miliband’s team has dismissed suggestions of another leadership bid.

His allies insisted his previous experience as leader had “inoculated him” against ever wanting the job again, rejecting the idea that he is plotting a return outright.

On Saturday, Sir Keir’s premiership was dealt another blow after allies of Deputy Prime Minister David Lammy revealed he had warned the PM not to appoint Lord Mandelson as Britain’s ambassador in Washington.

SIR KEIR’S PREMIERSHIP IN PERIL – READ MORE:

• Keir Starmer’s allies warn leadership challenge risks economic chaos: ‘It would be so irresponsible’
• Gordon Brown slams PM for being ‘too slow’ on Mandelson and warns: ‘Clean up or pay heavy price’
• Labour MP tells GB News Keir Starmer is ‘finished’ as pressure mounts on PM over Mandelson scandal

However, a spokesman for Mr Lammy has insisted that he is “focused on the job in hand and fully supports the Prime Minister as he gets on with delivering for the British people”.

There is said to be growing consensus among Labour backbenchers that it is a matter of “when” rather than “if” Sir Keir leaves Downing Street.

One Labour MP told The Telegraph: “After the May elections we need to very quickly find a new leader.

“I’ve not met anyone including Cabinet ministers, ministers and new backbenchers who believes that Keir should see the year out.

“He’s made so many mistakes. Apart from the mess around Mandelson, he has failed to implement the manifesto either in spirit or in detail.”

While another said: “I don’t know how you can go from effectively allowing the apologist for the most industrial-scale child rapist the world has ever seen, to be the US ambassador, and then come back to something like an acceptable position for the country. I think it’s incredibly difficult really.”

Former Prime Minister Gordon Brown slammed Sir Keir for being “too slow” to address the Lord Mandelson scandal and warned Labour must “must clean up or pay a heavy price”.

While insisting Sir Keir is “a man of integrity” who “wants to do the right things”, the ex-PM urged him urged to “do the right things now”.

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