The 1980 Labour Party leadership election was held following the resignation of James Callaghan, who had been Prime Minister from 1976 to 1979 and had stayed on as leader of the Labour Party for eighteen months in order to oversee an orderly transition to his favoured successor, Denis Healey, over his own deputy Michael Foot. However, during this period the party had become bogged down in internal arguments about its procedures and future direction.

Leonard James Callaghan, Baron Callaghan of Cardiff,, commonly known as Jim Callaghan, was a British statesman and politician who served as Prime Minister of the United Kingdom from 1976 to 1979 and Leader of the Labour Party from 1976 to 1980. Callaghan is the only person to have held all four Great Offices of State, having served as Chancellor of the Exchequer from 1964 to 1967, Home Secretary from 1967 to 1970 and Foreign Secretary from 1974 to 1976. He was a Member of Parliament (MP) from 1945 to 1987.