The contest to replace Angela Rayner, who resigned following a critical report on her failure to pay stamp duty, is being seen as a referendum on Sir Keir Starmer's government by senior party figures.
The Independent was told that anger among members over attempted welfare cuts and Middle East policy, along with the threat from Jeremy Corbyn's 'Your Party,' means the Prime Minister faces a serious internal challenge.
Greater Manchester Mayor Andy Burnham has urged Starmer to use the contest as a discussion on the future of the party, calling on him to be less 'factional and more pluralistic' and to 'listen to and respect' Labour MPs more.
The contest was triggered after Rayner was forced to step down following a critical report by ethics adviser Sir Laurie Magnus.
The Labour National Executive Committee (NEC) is set to meet to determine the rules and timeline of the contest.
Starmer has already appointed David Lammy as deputy prime minister and is reportedly pushing for new home secretary Shabana Mahmood to run for deputy leader.
However, Dame Emily Thornberry has become the first high-profile candidate to publicly state she is considering a run, offering a damning assessment of the government's communication of its achievements.
She said, 'They hear about the mistakes and the question is, why are we making these mistakes?'.
Other potential candidates include Dawn Butler and Dr Rosena Allin-Khan.
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