UK Prime Minister Keir Starmer announces resignation

The pound eased on Monday, as speculation mounted that Starmer could set out a timetable for his departure imminently. (AFP)

• Sterling fell 0.2 percent to $1.321, speculation on Starmer departure builds
• Options markets show higher demand for pound volatility hedges

LONDON: UK Prime Minister Keir Starmer resigned on Monday, paving the way for Britain to have its seventh prime minister in just over a decade.
He said he was stepping down as leader of the governing Labour Party but would remain caretaker prime minister until a new head is chosen by the party.
Andy Burnham, who won a special parliamentary election last week, confirmed that he will run to succeed Starmer.
Starmer won a landslide victory in the 2024 general election, but a series of missteps badly damaged his credibility.
Burnham says the country expects ‘stability and seriousness’
In a post on X, Andy Burnham thanked Starmer for his service and leadership.
He said Starmer’s decision to step down “marks the beginning of a transition and it is important that this process is conducted in an orderly and responsible way. I will put myself forward as part of this process.”
“The country expects stability, seriousness and a continued focus on the issues that matter most and that is what it will get.”
He added: “People want to see progress on economic growth, cost of living, public services, housing and opportunities for the next generation. Political change should never distract from the responsibility to improve people’s lives.”
Andy Burnham will run to succeed Starmer
Former Manchester Mayor Andy Burnham confirms he will run to succeed Keir Starmer as Labour leader and prime minister.
Wes Streeting, considered another leading contender, said he will back Burnham. That makes it more likely that Burnham will be selected without a leadership contest.
Liberal Democrats say ‘merry-go-round of prime ministers’ needs to change
Ed Davey, the Liberal Democrat Leader, said Starmer’s replacement would have to change “our broken politics.”
“The British people are sick of being let down by an endless merry-go-round of prime ministers while nothing really changes for them,” he said. “This time must be different. It can’t just be about changing who’s in No. 10, it has to be about changing our broken politics so we can fix our country.”
Zack Polanski, who leads the Green Party, echoed that the UK needs a “bold change of direction.”
Referring to former Greater Manchester mayor Andy Burnham, who many expect to become the next Labour leader, Polanski said: “The time for half measures and sticking plasters is long gone — if he becomes the next PM, Burnham must be bold or he will be bust.”
German leader calls Starmer a reliable partner
“The German government has always had in Keir Starmer a reliable and close partner in foreign policy questions, particularly regarding Ukraine,” Chancellor Friedrich Merz’s spokesperson, Stefan Kornelius, told reporters. He declined to comment on the “internal motives in Britain.”
He said the government believes a meeting that Merz plans to host in Berlin Wednesday of the so-called “E5” — Germany, France, Britain, Italy and Poland — will go ahead as planned despite Starmer’s announcement. The meeting is meant as part of preparations for the upcoming NATO summit.
Some key quotes from Starmer’s resignation speech
“Walking up this street two years ago was the proudest moment of my life. A new Labour government. The first in 14 years. A page in our country’s history turned after years of disappointment and despair. ... The chance to change the lives of millions of people for the better. That’s what I came into politics for. The journey to that point was not easy.”
“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.”
“Every decision I’ve taken has been about putting the country I love first. That is why I will resign as leader of the Labour Party. I have spoken to His Majesty the King this morning to inform him of my decision.
“I will remain in post as Prime Minister until the contest is complete. And I will do everything I can to ensure an orderly handover of power.”
The curious sign of the lion and the unicorn
Starmer stood behind a lectern featuring a crest with a lion and a unicorn.
One is not a native of the UK and the other is mythical.
Both have shared the distinction of being part of the royal coat of arms since the 17th century.
The lion, although never living in the wild of England, is its national animal. The unicorn, though fictional, is Scotland’s official animal.
The two became part of the crest when the two crowns were united in 1603, when King James I ascended the throne in England; he was already King James VI in Scotland.
Starmer is the sixth prime minister in 10 turbulent years of UK politics
When he was elected in 2024 in a landslide victory for Labour, Starmer pledged to steady the ship and end years of political chaos under his successors, the Conservative Party.
Starmer had succeeded Rishi Sunak, who held the top job from 2022 to 2024.
Before Sunak, Liz Truss lasted only 45 days. Truss followed three other Conservative prime ministers: Boris Johnson (2019-2022), Theresa May (2016-2019), and David Cameron (2010-2016.)
Formal contest to replace Starmer will begin in early July and could end in days
Starmer said Monday that nominations will open on July 9 and close when Parliament breaks up for its summer recess, which is scheduled to begin July 16. The contest will be open to members of Parliament from the ruling Labour Party.
Former Manchester Mayor Andy Burnham is the leading candidate to replace Starmer. The question now is whether anyone will challenge him.
If there is no challenge, Burnham could become Labour leader and thus prime minister soon after nominations close. Even if there is a contest, Starmer said a successor would be selected by Sept. 1.
EU leader praises Starmer
European Commission President Ursula von der Leyen praised Starmer’s legacy after news of his resignation in a post online on Monday.
“It can take many leaders years to grow into the statesman you became in just two years,” she said on X. “European and Ukrainian security is stronger because of you. Thank you, dear Keir.”
The prime minister’s speech ends on an emotional note
Starmer’s voice choked with emotion near the end of the brief statement.
“The question my party is asking now is whether I am best placed to lead us into the next general election,” Starmer said. “I have heard the answer of my parliamentary party to that question, and I accept that answer with good grace.”