What’s the point of Labour’s Deputy Leadership Election?

As ballots open in the race to replace Angela Rayner as Labour’s deputy leader, the contest between Lucy Powell and Bridget Phillipson is revealing more than just internal party dynamics – it’s exposing the fault lines in Keir Starmer’s government, the anxieties of Labour’s wider membership, and the uneasy balancing act between delivery and dissent.

The result, due on 25 October, will be the first deputy leadership election Labour has held in government since 2007. But despite the historic moment, the race has been overshadowed by a swirl of speculation – about leadership ambitions, Rachel Reeves’ looming Budget, and even the fallout from the high-profile collapsed espionage case that’s left Westminster rattled and Washington furious.

On paper, the contest is straightforward: Bridget Phillipson, Education Secretary and Starmer loyalist, versus Lucy Powell, former Leader of the Commons and soft-left standard bearer recently sacked in the PM’s reshuffle. However, beneath the surface, it’s anything but.

Phillipson has the backing of the leadership and the most MP nominations. She’s pitched herself as a unifying figure, a “proud working-class woman from the North East” who will “take the fight to Reform” and help Labour “deliver for our country.” Her campaign is tightly aligned with Starmer’s vision – disciplined, focused, and cautious.

Powell, meanwhile, is running as the candidate of the wider movement. Backed by Andy Burnham, the Greater Manchester mayor whose own leadership ambitions were dented at Labour Conference, Powell has positioned herself as a “bridge” figure between the leadership and the grassroots (and, some would argue between Starmer and Burnham). Her pitch is about listening to members, to Labour’s affiliated trade unions, and to communities, and her campaign has lent on the need for correcting course when government decisions feel disconnected from Labour’s values. Based on polling of Labour members, she is the current favourite to win the race.

She’s also been clear that she’s not Burnham’s proxy, calling the media obsession with his return “sexist” and dismissing the idea that her candidacy is part of a shadow war between two men. Undoubtedly, the optics of a race between two women being analysed in terms of what it means for two different male politicians are a little uncomfortable; however, there are nevertheless clear links between Powell’s campaign and Andy Burnham. 

Burnham’s new Labour ginger group, Mainstream, launched just before Conference, is already being seen as a platform for a future leadership bid. And Powell’s campaign, with its emphasis on values and movement politics, echoes Burnham’s messaging – though publicly, she has expressed surprise that Burnham named her as someone he hoped would run for the deputy leadership before she formally announced her campaign.

At Labour Conference, Burnham’s presence was felt – several fringe appearances, pointed interventions, and a sense that he was testing the waters. But if he was hoping to emerge as the party’s alternative leader, the moment may have passed. His challenge came off as too aggressive, ill-thought through and too soon, and ultimately helped unite the party around Starmer, at least for now.

Still, the fact that Powell is polling better among members than Phillipson suggests that the leadership’s grip on the party is not as firm as it might appear. The deputy leadership race is becoming a referendum on how much room there is for dissent, for debate, and for a broader coalition within Labour.

All of this is unfolding against the backdrop of Rachel Reeves’ anxious Budget preparations, with speculation mounting over how she’ll plug a £30–50 billion fiscal hole. Despite pre-election promises not to raise VAT, income tax or National Insurance, Reeves has confirmed that tax rises and spending cuts are on the table.

Among the options being floated: a one-off wealth tax, a raid on bank profits, and a council tax overhaul that could hit high-band properties hard. The IFS has warned that Reeves risks entering a “Groundhog Day” cycle of repeated tax hikes unless she builds more headroom into her fiscal rules.

For Labour members already uneasy about the government’s direction, the Budget could be a flashpoint. Powell has called for the two-child benefit cap to be lifted urgently, arguing that it speaks to Labour’s values. Phillipson, by contrast, has stayed close to the leadership line, focusing on delivery and discipline. However, sources close to Phillipson have indicated that she has been lobbying on scrapping the two-child cap behind the scenes for some time in her role as Education Secretary.

Ultimately, the deputy leadership contest is not just about who gets the title. It’s about what kind of party Labour wants to be in government. A party of delivery or a party of debate? A party that listens or one that leads from the centre?

Phillipson represents continuity, control, and a government-first mindset. Powell represents challenge, connection, and a movement-first approach. The result will tell us not just who wins, but how much power Labour’s membership, in the short term, has to shape its future.