Streeting had, until recently, made no secret of his ambition to enter the race for the party leadership. Ultimately, however, he announced that he would not run and would instead support Burnham. In a letter published on the social media platform X, he stated that after lengthy discussions with Burnham, he had come to believe that Burnham’s vision of “progressive capitalism” has a place in the future direction of the Labour Party.
“We can spend the summer exaggerating minor differences, or we can roll up our sleeves and help him bring about the change that our party and our country need”, Streeting wrote.
Following Streeting’s endorsement of Burnham, Reuters reported that the pound rose and British government bonds rallied, as investors welcomed a clearer path to Burnham’s premiership.
Pressure to Resign
Calls for Starmer to step aside had been building for months and intensified significantly last week.
The pressure increased after Burnham secured a decisive victory in a parliamentary by-election, defeating the candidate from Reform UK, Nigel Farage's party, which has led several opinion polls for more than a year.
Many Labour MPs have concluded that Burnham could help reverse the party's declining support. Starmer's approval ratings, meanwhile, have fallen to record lows.
In his announcement, the prime minister thanked colleagues for their support and paid tribute to his wife and children.
Financial markets reacted calmly to the news, suggesting investors had already anticipated the possibility of a leadership change.
Uncertainty over Burnham's Agenda
Despite efforts to ensure a smooth transition, the change in leadership creates uncertainty.
Burnham has yet to present detailed plans on foreign policy, the economy or defense. Like Starmer, he may face limited room for manoeuvre given Britain's high borrowing costs, elevated debt levels, weak economic growth and growing demands for spending in areas such as defense.
According to Reuters, investors remain divided over whether a Burnham government would reassure financial markets.
Economists at Citibank have warned that any incoming administration would inherit a fragile fiscal position and limited options for delivering major policy changes.
Starmer's successor will become the seventh British prime minister since the 2016 Brexit referendum. Analysts say the turnover reflects the difficulty British politics has faced in convincing voters that it can improve living standards, strengthen public services and address illegal immigration.
Nigel Farage immediately called for an early general election.
“I’ve had enough of waiting around. Britain needs change – real change, not another washed-up has-been shoved into place by the uniparty”, Farage said.
Moscow Does Not Expect a Change in Relations
The Kremlin said on Monday that Starmer’s departure, despite his strong support for Ukraine, was unlikely to alter what Moscow describes as London’s hostile stance toward Russia.
“Starmer has not done anything to distinguish himself on the issue of British-Russian relations”, Kremlin spokesman Dmitry Peskov told reporters.
“He has always been in favor of keeping relations at a zero level. It is unlikely that anyone on the British political scene will hold a position on our country that differs from Starmer’s”, Peskov said.
Germany, meanwhile, expects Starmer to attend a multilateral meeting in Berlin on Wednesday, a spokesperson for the German government said on Monday.
The E5 meeting is part of preparations for the upcoming NATO summit and is expected to go ahead as planned.
The E5 format brings together Britain, France, Germany, Italy and Poland.
“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.
Berlin said it expected close cooperation with Britain to continue under Starmer’s successor.
This story is developing.
(lud)
