Lucy Powell has been elected as Labour’s new deputy leader, securing 54% of the vote against Bridget Phillipson’s 46%. With Phillipson viewed as closer to Labour’s leadership, Powell ran as a candidate of change, emphasising reconnecting with grassroots members and reclaiming traditional Labour values. She positioned her campaign as willing to challenge the leadership from within while advocating for a bolder, more progressive domestic policy agenda.
Polling throughout the contest always signalled Powell’s advantage. Early surveys in late September placed her on 57 %, with Phillipson lagging at around 26%, and Powell’s lead persisted even when accounting for undecided voters. As the campaign progressed into October, Phillipson gained ground, narrowing the gap slightly to 57% vs 40%, but Powell maintained a comfortable lead. The final result ended up reflecting not just a campaign that became a foregone conclusion, but an extremely low turnout of just 16.6 % of eligible Labour voters, disillusioned with two candidates offering very little prospect of “real” change.
Whilst Powell’s eventual victory does represent members’ demands for a stronger, more independent voice within Labour, the contest ended up pitching two candidates with no fundamental difference in ideological outlook. Both are moderates, broadly on side with Starmer’s wing of the party and keen to support progressive priorities and grassroots engagement. Neither particularly represented demands of the union or the harder left.
During the campaign, Powell pledged action to address issues plaguing the government since its election: cuts to disability benefits; the winter fuel allowance and moves to abolish the two-child benefit cap. Her line that the party “need[s] to have the guts to listen to the country and change course” when “we’ve got it wrong,” played well with disaffected members, whereas Phillipson’s record as education secretary consistently underwhelmed.
Crucially for the Prime Minister’s future, Powell also received the backing of heavyweight Andy Burnham, one of Starmer’s few serious contenders for the Labour crown. Powell, as a Manchester MP, has deep regional ties with the city’s mayor, serving together in Ed Miliband’s Shadow Cabinet, and becoming longtime allies and friends. Burnham’s support marked the apex of her regional powerbase, trickling down to the other “Manchester Mafia” in the Northwest, the majority of which came out fighting for her too.
Though she declined to back a horse in the race, Ashton-under-Lyne MP – Burham’s rival for the left – and former Deputy Prime Minister Angela Rayner’s congratulations to her “friend and brilliant colleague” Lucy Powell, and her simple “commiserations to Bridget Phillipson” hinted at her preference. It is little surprise then that at her first PMQs since winning, Powell was sat next to Rayner just over Keir Starmer’s right shoulder.
As Deputy Leader, Rayner often stepped in to calm colleagues when No. 10 seemed unable to. Rayner’s true value to the Prime Minister was not just in her punchy and authentic communication style, but also as a mediator; however, as a member of the Cabinet, Rayner was also bound to collective responsibility, something which Powell will not have to adhere to.
Indeed, as the self-declared new PLP shop steward, there is no indication that Powell wants to front for the government in the same way. In the next few months, as No. 10 and the Treasury go back for a second try at welfare reform, Starmer will not be able to rely on his deputy now to steady the ship. The upcoming autumn budget will undoubtedly provide a litmus test for Lucy Powell’s new style of constructive criticism.
And whether her pledge to speak up for the country and connect with communities accelerates or comes at the cost of Labour’s revival in the polls.
What this means for business: Business as usual (for now)
Powell’s election will not fundamentally shift Labour’s direction or who makes the decisions. As Deputy Leader, she’s outside Cabinet and has no formal say over policy direction, so the Starmer–Reeves axis remains firmly in charge. For business, messages should remain consistent: angled towards growth and anchored in Starmer’s “five missions” for national renewal.
But watch this space…
But Powell’s win undoubtedly gives a voice to grassroots frustration and could embolden MPs who want Labour to show more heart on welfare and business taxation. If tensions grow, it could test already fragile party unity and re-energise the left. For now, it’s not a fundamental pivot, but a pressure point worth watching.