Defeated Labour Party to announce new leader in September

LONDON (Reuters) - Britain's opposition Labour Party, which suffered a heavy election defeat last week, said on Wednesday it would announce its new leader on Sept. 12 after a process which has already triggered a battle to shift its political stance. Ed Miliband, the previous leader, quit on Friday, saying he took responsibility for the rout which saw the party virtually wiped out in Scotland and fail to win key swing seats in England from Prime Minister David Cameron's victorious Conservatives. Some in the party had favoured a quicker contest, fearing the risks of leaving the government without a strong opposition for several months. But others cautioned against rushing the decision over the party's future direction. "The General Election saw the Labour Party suffer a serious defeat, and over the coming weeks we need an open and honest debate on the right way forward," Harriet Harman, the party's acting leader, said in a statement. Miliband was seen to have steered the party leftwards in the last five years, prompting senior party figures, including former prime minister Tony Blair, to say it must return to the political centre ground if it is to win again. The party's business spokesman Chuka Umunna, one of two candidates to come forward so far, is the bookmakers' favourite. Home affairs spokeswoman Yvette Cooper and health spokesman Andy Burnham are also expected to run. (Reporting by Kylie MacLellan; Editing by Andrew Osborn)