Starmer resigns as UK prime minister, paving way for Britain’s 7th leader in a decade

United Kingdom Prime Minister Keir Starmer on Monday announced his resignation as both prime minister and leader of the Labour Party, ending months of political uncertainty and triggering a contest to choose his successor.

The decision comes amid growing pressure on Starmer following Labour’s heavy losses in May’s local elections and increasing criticism from within his own party over his leadership and policy direction, CNBC Africa noted.

His resignation marks a dramatic turn of events less than two years after he led Labour to a landslide victory in the 2024 general election, securing one of the party’s largest parliamentary majorities in modern times.

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Speaking outside 10 Downing Street shortly after 9:30 a.m. in London, Starmer said he would remain in office until the Labour Party completes the process of electing a new leader, allowing for what he described as an orderly transfer of power.

Markets reacted cautiously to the announcement. The pound weakened by 0.19 percent against the U.S. dollar to trade at $1.3207, while the yield on 10-year U.K. government bonds, known as gilts, remained largely unchanged at 4.8452 percent.

An emotional Starmer described becoming prime minister as the proudest moment of his life. He defended his record in office, saying his administration had helped restore Britain’s international standing, attract investment and strengthen workers’ rights.

However, he acknowledged that many Labour lawmakers no longer believed he was the best person to lead the party into the next general election.

“I have heard the answer from my parliamentary party. I accept that answer with good grace. I will resign as leader of the Labour Party,” he said.

Pressure on Starmer intensified after former Greater Manchester mayor Andy Burnham secured a decisive victory in the Makerfield by-election on June 18, fuelling speculation that he could challenge for Labour’s leadership and potentially become Britain’s next prime minister.

Starmer and Finance Minister Rachel Reeves had already been grappling with internal dissatisfaction over fiscal policy. Party divisions were further deepened by welfare reform proposals and the appointment of Peter Mandelson as U.S. ambassador, a move that generated criticism because of his past association with convicted sex offender Jeffrey Epstein.

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An Ipsos poll published on Friday found that 52 percent of Britons believe Starmer should step down as prime minister, up 5 percentage points from May, while 35 percent said he should remain in office.

U.K. gilt yields climbed on Friday after Burnham’s by-election victory. Nevertheless, Burnham has recently sought to reassure investors by distancing himself from previous remarks suggesting Britain was overly reliant on bond markets.

Starmer’s departure means Britain is set to welcome its seventh prime minister in just 10 years, highlighting the country’s prolonged period of political upheaval.