U.K. Prime Minister Keir Starmer declared on Monday that he will resign as Labour leader and prime minister, concluding months of political chaos and signaling a leadership race to succeed him.
The announcement comes amid increasing pressure after Labor suffered heavy losses in local elections in May and faced a growing rebellion from its own lawmakers over its leadership and policy agenda.
Following Starmer’s announcement, the pound sterling dropped as much as 0.4% to reach $1.3181, nearing its 2026 low of $1.3159 set in March.
Starmer’s announcement came after Andy Burnham’s victory in the Makerfield by-election, which returned the Greater Manchester mayor to Parliament and cleared the way for him to run for leadership.
The main question for investors is how the country’s finances will be affected if Burnham, a former minister, becomes prime minister as expected. He has provided little clarity on the policies he would pursue, making it hard to assess the potential impact on future borrowing. Markets are worried about any possible rise in bond sales to fund spending, especially since the UK is already dealing with high debt levels.
Keir Starmer’s successor will be the country’s seventh leader in 10 years.
By CEO NA Editorial Staff
