Sir Keir Starmer announced yesterday that he will resign as Labour leader and prime minister, opening the way for a Labour leadership contest after rising pressure from within his party.
In an emotional statement outside Downing Street, Starmer said he had listened to Labour MPs asking whether he was still the right person to lead the country into the next general election. He said he had heard that answer and would stand down “with good grace”.
The announcement follows Andy Burnham’s decisive by-election victory as an MP last Thursday, which intensified calls for change at the top. Labour is expected to confirm the timetable for choosing Starmer’s successor, with nominations due to open on 9 July if the party proceeds to a contested race.
Starmer will remain in post until the process is complete. If no contest takes place, a successor could be in place by mid-July. If rival candidates come forward, the transition could run into September.
The resignation comes less than two years after Labour’s landslide general election victory and marks another prime ministerial departure during a period of repeated political change in Westminster.
Members of Starmer’s team gathered in Downing Street as he confirmed his decision and promised an orderly handover. A new prime minister is also likely to appoint a new chancellor.
For businesses and investors, attention now turns to tax, borrowing, public spending and regulation. With growth weak and the tax burden rising, the economic stakes are high.
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