Business Secretary Peter Kyle said Sunday that Greater Manchester Mayor Andy Burnham should remain focused on his city as speculation grew that Burnham could seek a return to Westminster and, potentially, Labour’s leadership.

Kyle described Burnham as "a real talent" and told Sky News that Manchester "really needs him," comments that underlined widening unease inside the party about the possibility that the former cabinet minister could contest a parliamentary seat if a Labour MP stood down. Supporters of Burnham are reported to be laying groundwork for a Westminster comeback that could leave him positioned to run in a future leadership contest should Labour MPs seek a new leader.

Reports in national newspapers said some Labour figures in Manchester have privately discussed plans for a sitting MP in the city to step aside because of ill health, creating a vacancy that could be contested by Burnham. Backers have named a network called Mainstream — advocating policies such as wealth taxes, nationalisation of utilities and an end to the two-child benefit cap — as a vehicle through which he might build support.

The speculation follows a string of public and private criticisms of Prime Minister Keir Starmer from the party's left. Last week, Clive Lewis said Starmer did not seem "up to the job," and Barry Gardiner warned of "toxic" resentment among Labour MPs and grassroots members. Some reports linked those concerns to unease about wider controversies that have dogged the party.

Reform UK leader Nigel Farage said on Sunday that a Burnham bid for a Manchester seat would be fiercely contested, telling a national newspaper it "would be an epic battle" that his party would target. Polling in parts of Manchester has shown strong Reform support, raising questions among local Labour figures about Burnham's electoral prospects should he leave his mayoralty to fight a Westminster contest.

Inside Labour, views on a possible return vary. Peter Kyle said he enjoyed working with Burnham in Greater Manchester and that it would be a "shame for Manchester to lose him," urging him to remain in his current role. Others in the party have not ruled out the idea that a vacancy could be orchestrated to allow Burnham to rejoin Parliament in time for a leadership challenge if sufficient MPs sought a change.

Burnham, who is not currently an MP but remains a prominent Labour figure with higher personal approval ratings than many national colleagues, has been linked to deputy leadership contender Lucy Powell and is reported to be backing her campaign. Labour MPs backing Powell say her election as deputy could strengthen Burnham-aligned influence within the party.

Local Labour sources in Manchester expressed scepticism about the political risks of any move. They pointed to Reform's strength in current polls and to the fact that contesting a marginal seat would require Burnham to surrender a high-profile regional post, a step some described as unlikely.

Labour's annual conference, due to start later this month, is set to be a focal point for internal debate. Burnham is expected to use the platform to criticise the government's direction and press for policy changes, while party leadership contests would require formal nominations and ballots should a vacancy and challenge materialise.

No formal announcement has been made by Burnham about a Westminster candidacy, and party officials declined to comment beyond reiterating that internal discussions about succession and parliamentary seats are ongoing. The speculation reflects broader unease in Labour over strategy and leadership as the party navigates both internal dissent and electoral challenges from rivals.