LONDON, June 21 (Reuters) - British business minister Peter Kyle said Prime Minister Keir Starmer is reflecting on the "political realities" after party rival Andy Burnham was elected to parliament, setting up a potential leadership challenge.
Speaking to broadcasters on Sunday, Kyle said he had no reason to believe Starmer was planning to announce his resignation on Monday but that it would be "delusional" not to think his position was under threat.
"Today, as in every other day I've ever known Keir, he is out there working hard. At the same time, he is also trying to create the space where he can think and reflect on the political realities and challenges - and the opportunities - that are before us," Kyle said in an interview with Sky News.
Kyle did not repeat Downing Street's recent refrain that Starmer planned to fight any challenge.
BURNHAM WAITING IN THE WINGS
The threat to Starmer's position, which has been building for months, increased sharply on Friday when Greater Manchester Mayor Andy Burnham won a seat in parliament that will allow him to launch a formal leadership challenge.
Starmer's unpopularity was laid bare by the ruling party's heavy losses in local elections in May, and polls of Labour party members indicate Burnham would win such a contest.
The Observer newspaper reported late on Saturday that Starmer was discussing his future with his wife at his official Chequers country residence before making a final decision, and that senior Labour figures expected a clear statement as soon as Monday.
In response to the report, a government source said the prime minister remained focused on getting on with the job of governing.
Asked about reports that Starmer was preparing to resign, Kyle told Sky News: "I have nothing to believe that they are true. I am seeing a lot of speculation out there."
Kyle declined to go into detail about what he said was frank conversation with Starmer on Friday, beyond saying it was lengthy and that "not once ... did he ever ask about self-interest. It was always about the country".
In a later interview with the BBC, Kyle accepted that Starmer's position was under threat.
"I don't want to come on here and be delusional that there is no process, there are no forces at work which are challenging the prime minister as leader. That is clearly the case," he said.
Former minister Jess Phillips - who is a supporter of health secretary Wes Streeting, another potential challenger to Starmer - told the BBC that "it feels like we've come to the end of the road" and that it would be best for Starmer's departure to be "as dignified as possible".
Starmer has previously said he would stand in any formal Labour Party leadership contest that sought to replace him.
Leadership contenders need to amass the support of 81 Labour members of parliament - a fifth of those sitting - to launch a formal challenge.
(Reporting by David MillikenEditing by Christina Fincher)
