The party's second-in-command has indicated that Andy Burnham could have triumphed in the recent Manchester byelection, as she urged her party to leverage the popular Greater Manchester mayor.
Overcoming a sizable 13,000-vote Labour majority from the previous general election, Hannah Spencer, a community tradesperson, became the party's fifth MP on Friday. This happened in an area that had consistently returned Labour MPs for nearly a century.
The Reform Party's Matt Goodwin placed second, just ahead of the official Labour contender, Angeliki Stogia.
The surprise result has sparked fresh debate of the party's choice to prevent Andy Burnham from standing in the seat last month.
Speaking to the BBC, Labour's deputy leader, Lucy Powell, stated, "Andy Burnham likely could have held the seat. I think definitely the Greens wouldn't have targeted the seat in the manner that they did."
Powell was the sole member of Labour's top decision-making body to vote in favour of allowing Burnham to stand, with the majority, including leader Keir Starmer, voting against.
However, she stated she understood "collective responsibility" for the outcome, pointing to worries over triggering a separate election in Greater Manchester.
Powell also stressed that her party needed to learn from the sources of Burnham's widespread popularity in the region. She said people "see in him someone who is fighting for them, someone who is delivering those core principles and Labour policies."
"We have to utilise that insight, leverage Andy Burnham, but also draw on that and reflect on how we could replicate that success across the country," she continued.
Andy Burnham is reportedly considering having another go at becoming an MP again. A source close to him said, "With all the chaos and turmoil, who knows what might happen. It would be foolish to say he would never."
To date, Burnham himself has yet to comment on the Gorton and Denton outcome. Meanwhile, Keir Starmer has vowed to fight on despite calling the poll result "disappointing."
Angela Rayner, a prominent voice on Labour's left, called the byelection result "a wake-up call" for the party.
In contrast, the Home Secretary is expected to warn against the party shifting leftward in response to the defeat. This comes as she introduces new laws on stricter border controls next week.
An insider was quoted as saying, "The party should not learn the wrong lessons from its electoral setback. The idea that we are alienating support over immigration is just plain wrong."
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