UK bond vigilantes circle gilts as election losses hit PM Starmer

British Prime Minister Keir Starmer gives an update on the situation in the Middle East at Downing Street Briefing Room, in London, Britain, March 05, 2026. Jaimi Joy | Via Reuters Early results from local council elections pointed to big losses for the U.K.'s ruling Labour Party on Friday, raising questions about Keir Starmer's future as prime minister. Vote counts pointed to hundreds of Labour councilors losing their seats and the leadership of many local councils changing hands. The predicted result will not affect the composition of parliament in Westminster or change who is in government, but reflects souring sentiment on Starmer's leadership among the electorate. Labour and its main opposition party, the Conservatives, are widely expected to suffer heavy losses, while right-wing Reform UK and the left-wing Green party are anticipated to make major gains. Backbench Labour MPs — parliamentarians without a position in government — are reportedly planning to blame looming losses on the prime minister and demand his resignation. Starmer and his finance minister, Rachel Reeves, have been battling discontent over fiscal policy within their own ranks, while welfare reforms and the appointment of Peter Mandelson — an associate of the late sex offender Jeffrey Epstein — as U.S. ambassador, have further damaged inter-party relations . …