Sir Keir Starmer is preparing to offer London Mayor Sir Sadiq Khan a seat in the House of Lords following next month's local elections, according to sources familiar with the discussions.
The potential peerage would come as the Prime Minister seeks to strengthen his position ahead of what many expect to be a damaging set of results for Labour on May 7.
Insiders told the Financial Times that the appointment would help Sir Keir "shore up his position with patronage" during a period of significant political vulnerability.
Some Labour MPs anticipate colleagues may attempt to remove the Prime Minister following elections to the Scottish Parliament, Welsh Senedd and 136 English councils, where the party faces potentially heavy losses to Reform UK, the SNP, Plaid Cymru and the Green Party.
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The proposed peerage would likely attract criticism given that Sir Keir has previously committed to abolishing the House of Lords entirely.
The Prime Minister has already appointed more peers than any of his four predecessors, making any fresh batch of appointments politically sensitive.
In total, Sir Keir is expected to allocate approximately 40 new peerages across the political spectrum, including around 25 for hereditary peers who would otherwise lose their seats next month following recent legislation.
The Government has passed laws removing hereditary peers from the upper chamber, where 84 currently sit. This would reduce the Lords to roughly 824 members after accounting for the new appointments and an increase in retirements.
The Prime Minister has reportedly offered a peerage to the London Mayor
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Labour figures argue additional members are necessary to rebalance the chamber's political composition, with Conservatives currently holding 277 seats compared to Labour's 227.
Sir Sadiq has emerged as one of the Prime Minister's most prominent critics in recent months, repeatedly breaking ranks with government policy.
Following Labour's third-place finish in the Gorton and Denton by-election behind the Greens and Reform in February, the London Mayor launched a scathing assessment of the party's direction.
"A political strategy of taking liberal, progressive voters for granted is clearly flawed," he wrote in the Guardian. "The national Labour Party and Government doesn't just need to reflect on this result, but fundamentally rethink its approach."
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Sir Sadiq has won three mayoral elections
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Sir Sadiq has also called for Britain to rejoin the European Union, telling Italian newspaper La Repubblica that Labour should fight the next general election with a clear manifesto commitment to full EU membership.
One government figure suggested that bringing Sir Sadiq "inside the tent" would "solve a lot of problems" for the Prime Minister.
Josh MacAlister, the Minister for children, families and wellbeing, declined to deny the reports when questioned on Friday morning. Asked whether the Financial Times story was accurate, he responded: "I have no idea."
However, Mr MacAlister endorsed the general principle, telling Sky News it was "not a bad idea" to offer Sir Sadiq a Lords seat.
London Mayor Sir Sadiq Khan has been critical of the party's path after the Gorton and Denton by-election
| GETTY"When you've got members of the House of Lords in local government, and now in mayoral positions, it's incredibly important for the legislation we're trying to pass," Mr MacAlister explained.
Chair of the London Green Party Eugene McCarthy criticised the rumours, telling GB News: "It's yet another U-turn on a basic Keir Starmer pledge, which was to abolish and make democratic the House of Lords. Time and time again, increasingly recently, we see politicians just ignoring promises they've made."
An ally of Sir Sadiq said that peerages were a matter for the government, adding that the mayor "is completely focused on the job of delivering for Londoners".
A Downing Street spokesman dismissed the reports, stating: "This is speculation." The mayor's office also declined to comment.
Downing Street has denied the rumours of a peerage for the London Mayor
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Sir Sadiq, who secured a record third term as London Mayor in 2024, has not ruled out seeking a fourth term in 2028.
Speaking to LBC in February, he said: "I've got the best job in politics.
"I'm thoroughly enjoying being the Mayor because I can deliver on the London promise that you work hard, you get a helping hand, you can achieve anything."
A spokesman for the Mayor said: "Sadiq has not yet announced whether he is standing again for Mayor. This is the same as previous elections, where he announced his decision much later in the electoral cycle".