The Labour leadership race is likely to replace one unpopular big-government prime minister with another.
British Prime Minister Keir Starmer announced his resignation on Monday. And, the U.S. and Iran have agreed to a "roadmap" to reach a final deal within 60 days.
Keir Starmer announced his resignation as UK prime minister, paving the way for Andy Burnham to take over the top job. The long-time mayor of Manchester, who won a parliamentary seat last week, announced a leadership bid minutes later — while his main rival, Wes Streeting, bowed out of the race. (Source: Bloomberg)
British Prime Minister Keir Starmer resigned Monday after weeks of turmoil within his government, setting the country up to find its seventh leader in the last decade. Why it matters: The Labour Party, which Starmer currently leads, must quickly choose a new leader as the U.K. faces an economic crisis tied to the war in Iran.Starmer said he will continue as a caretaker until his successor is chosen, which he promised would happen by the opening of Parliament in September. Driving the news: Starmer faced calls from members of his party to resign after disastrous May local elections that saw Labour lose control of Wales' Parliament, record its worst Scottish election results on record and drop over 1,200 seats in England.Following the heavy election losses, former Tony Blair-era government minister Andy Burnham announced plans to return to Parliament and was last week elected to a seat in northern England after declaring "a vote for me will be a vote to change Labour."What they're saying: "The question my party is asking now is whether I am best placed to lead us into the next general election. I have heard the answer of my parliamentary party to that question, and I accept that answer with good grace," Starmer said outside 10 Downing Street.State of play: Anger had been growing for months over several Starmer policies and controversies. Starmer's government did a U-turn on several proposals, including welfare cuts. The firing of Peter Mandelson from his post as U.K. ambassador to the U.S. over his ties to Jeffrey Epstein also generated backlash, and was promptly followed by news that Starmer had moved forward with Mandelson's appointment despite his failing security checks.Zoom in: Starmer distanced himself from the revelations at the time and said he was "absolutely furious" that members of his government had advanced Mandelson's appointment in spite of the risk, calling it "unforgivable" and saying he had been unaware.Conservative Party leader Kemi Badenoch called Starmer's claims "completely preposterous."Hundreds of pages related to Mandelson's appointment that were published on June 1 piled further pressure on Starmer. In one exchange, Mandelson told a minister that Starmer "lacks verve, as does the Cabinet as a whole."Flashback: Starmer reportedly chose Mandelson despite his ties to Epstein because he believed Mandelson's trade expertise would help navigate President Trump's planned tariff policies.After details of Mandelson's relationship with Epstein emerged, Mandelson was fired in September 2025 and he was later arrested on suspicion of misconduct in public office, including potentially leaking trade secrets to Epstein.He has denied wrongdoing and has not been charged with a crime.By the numbers: Starmer's tenure as prime minister was among the shortest in modern British history.Liz Truss lasted just 44 days in 2022.Rishi Sunak, elected in 2022, served for one year and eight months.Starmer, elected on July 5, 2024, served for just under two years.What's next: Labour officials are expected to begin a leadership contest immediately, with Burnham viewed as the leading contender to replace Starmer.His odds of being the next PM topped 95% on multiple prediction markets Monday morning.Go deeper: Europe confronts Epstein shame amid muted U.S. reckoningEditor's note: This story has been updated with details about Burnham.
Allies of Keir Starmer expect him to set out a timetable for his departure as UK prime minister imminently, putting Britain on course for its seventh premier in a decade and paving the way for Andy Burnham to replace him.
British Prime Minister Keir Starmer announced on Monday that he was resigning his position as leader of the Labour Party and with it, his role as the United Kingdom’s leader. Karmer had been embroiled in controversy for months with many in the government calling for his resignation. He had remained defiant in calls for him […]
Amundi Investment Institute Head Monica Defend discusses the market reaction to Keir Starmer's announcement that he will step down as British prime minister. Speaking on Bloomberg Television, she says "this was largely expected," which justifies the "containment in volatility." Defend adds there is still value on the yield and that "the real story is one of fiscal discipline." (Source: Bloomberg)
Keir Starmer has stepped down as the UK's prime minister after months of pressure. Bloomberg News Editor-in-Chief John Micklethwait discusses what key issues undermined the outgoing premier's time at Number 10. (Source: Bloomberg)
