Friday 08 May 2026 5:30 am | Updated: Friday 08 May 2026 8:21 am
Reform UK has hailed a "historic change in British politics" as the party made significant gains in the London local elections, taking control of Havering while Labour lost key councils including Westminster and Wandsworth. Prime Minister Sir Keir Starmer is bracing for what could be a brutal set of results for the Labour Party, which lost councils in its northern heartlands in the early hours of Friday morning.
Labour Holds Some London Boroughs
Despite the losses, Starmer's party has held on to some key London boroughs so far, including Merton and Hammersmith. However, Labour lost Wandsworth to no overall control after a tight battle with the Conservatives. More than 5,000 council seats are up for grabs, including every single council seat in London.
Challenges from Reform and Greens
Previously dominant in the capital, Labour could lose a raft of London boroughs as it faces bitter challenges from Reform UK on its right flank and the Green Party on its left. Zack Polanski's resurgent Greens are targeting inner-city areas like Lewisham, Lambeth and Hackney – as well as Starmer's backyard in Camden. Nigel Farage's Reform, on the other hand, is hopeful they can take outer boroughs like Hillingdon, Havering, Bromley and Bexley.
Potential Leadership Challenge
Starmer's party is defending 2,557 seats at this set of elections, and some pundits have suggested they could lose up to 1,800. This would be a stunning wipeout which would send Labour reeling and put the Prime Minister in perhaps his weakest position yet. May 8 has long been considered the day on which a move to remove Starmer could be triggered, potentially putting an end to months of speculation around the Prime Minister's leadership.
Market Reaction
The City is bracing for market backlash from the elections and a potential Labour leadership challenge. Most analysts fear a change of Prime Minister could prompt the government to take a leftward turn and loosen fiscal policies, borrowing more from City firms.
Stay tuned for every London result as it comes in, plus key market and political reaction.
