The party's second-in-command has indicated that Andy Burnham would have triumphed in the Gorton and Denton byelection, while she called for her party to leverage the popular Greater Manchester mayor.
Overcoming a substantial 13,000-vote Labour majority from the last general election, Hannah Spencer, a community tradesperson, was elected as the party's fifth MP on Friday. This happened in an area that had elected Labour MPs for nearly a century.
Reform UK's Matt Goodwin finished second, narrowly beating the official Labour contender, Angeliki Stogia.
The surprise result has prompted renewed questioning of the party's controversial decision to prevent Andy Burnham from contesting the seat last month.
Speaking to the BBC, Labour's deputy leader, Lucy Powell, remarked, "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, opposing the move.
However, she told the BBC she accepted "the group's decision" for the ruling, pointing to worries over triggering a separate election in Greater Manchester.
Powell also emphasized that her party must draw inspiration from the sources of Burnham's widespread popularity in the region. She said people "view him as someone who is fighting for them, someone who is implementing those Labour values and party pledges."
"We have to draw on that, make use of Andy Burnham, but also draw on that and consider how we could replicate that success across the country," she continued.
Andy Burnham is reportedly considering another attempt 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 not publicly spoken on the Gorton and Denton outcome. Meanwhile, Keir Starmer has vowed to fight on despite calling the poll result "disappointing."
Angela Rayner, a key figure 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 legislation for tougher immigration measures next week.
A source close to the Home Secretary was reported stating, "The party should not misinterpret the message from its electoral setback. The idea that we are alienating support over immigration is simply incorrect."
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