The party's second-in-command has suggested that Andy Burnham would have won the recent Manchester 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, a local Green councillor, a community tradesperson, became the Green Party's fifth MP on Friday. This happened in an area that had consistently returned Labour MPs for almost one hundred years.
The Reform Party's Matt Goodwin finished second, just ahead of the Labour candidate, Angeliki Stogia.
The unexpected outcome has prompted renewed questioning of the party's choice to prevent Andy Burnham from contesting the seat last month.
In an interview with the BBC, Labour's deputy leader, Lucy Powell, remarked, "Andy Burnham probably would have held the seat. I think definitely the Greens wouldn't have targeted the seat in the same way that they did."
Powell was the only member of Labour's top decision-making body to vote in favour of allowing Burnham to stand, with eight others, including leader Keir Starmer, voting against.
However, she stated she accepted "collective responsibility" for the outcome, pointing to worries over triggering a separate election in Greater Manchester.
Powell also stressed that her party needed to draw inspiration from the sources of Burnham's strong support in the region. She said people "view him as someone who is on their side, someone who is delivering those core principles and Labour policies."
"We have to draw on that, make use of Andy Burnham, but also draw on that and reflect on how we could replicate that success nationally," she continued.
Andy Burnham is understood not to have ruled out another attempt at returning to parliament. One ally commented, "Given the current political climate, who knows what might happen. It would be unwise to say he would never."
To date, Burnham himself has yet to comment on the Gorton and Denton outcome. Meanwhile, Keir Starmer has vowed to fight on despite labelling the poll result "disappointing."
Angela Rayner, a prominent voice on Labour's left, described the byelection result "a wake-up call" for the party.
In contrast, the Home Secretary is expected to warn against the party moving to the left in response to the defeat. This comes as she introduces new laws on stricter border controls next week.
A source close to the Home Secretary was reported stating, "The Labour government should not misinterpret the message from its electoral setback. The idea that we are alienating support over immigration is just plain wrong."