Keir Starmer appeared visibly emotional today as he announced he would step down, with Andy Burnham increasingly poised to take over in Downing Street.
Speaking outside the famous black door of No10, the Prime Minister defended his record, highlighting his role in leading Labour back into power while also making a number of contested claims about the Government’s achievements.
But Sir Keir conceded that his leadership had reached its end. “I know the question being asked now is not who is best placed to change the Labour Party… the question my party is asking now is whether I am best placed to lead us into the next general election,” he said.
He continued: “I accept that answer with good grace… that is why I will resign as leader of the Labour Party.”
Sir Keir said there would be an “orderly” process to select his successor. If only one candidate comes forward — Mr Burnham — a new leader could be confirmed before the Commons rises for its summer recess on July 16. If the contest is competitive, the decision may be delayed until August.
The outgoing Labour leader’s voice faltered as he thanked his family for their support, saying he would now concentrate on being the “best husband” and the “best dad.”
His wife, Victoria, and the couple’s son stood alongside close colleagues in the street as he delivered the statement. Nearby, long-standing anti-Brexit campaigner Steve Bray could be heard playing the EU anthem, Ode to Joy, through speakers.
Mr Burnham, who has built strong backing among Labour MPs after a decisive victory in last week’s Makerfield by-election, is expected to be sworn in at the Commons at 2.30pm.
But Nigel Farage immediate joined calls – including from some Labour MPs – for a general election to accompany the change at the top.
The PM returned to Downing Street from Chequers early this morning, after spending the weekend locked in talks with wife Victoria and close aides. He spoke to the King, who is at his Highgrove residence, by phone before making the announcement.
In other twists and turns today:
- A minister has warned that Mr Burnham must call a snap general election if he takes over from Sir Keir;
- Markets are giving their verdict on a turbulent weekend, with fears a new PM could tear up fiscal rules and lurch Left;
- Britain is on track for its seventh PM in a decade since the Brexit referendum;
- Sir Keir is set to be the shortest-serving Labour PM since universal suffrage.
Keir Starmer talked up his achievements in getting Labour elected in a statement outside the famous black door of No10
Sir Keir hugged his wife Victoria after paying an emotional tribute to his family
The tearful couple posed for pictures on the doorstep before heading back inside
Close colleagues gathered outside in the street to watch the statement
Sir Keir reiterated his defiance on Friday after Mr Burnham stunned the political world by securing a 9,000 majority over Reform in Makerfield.
He insisted he would fight any challenge to his leadership.
But the mood music had dramatically shifted by yesterday, when Business Secretary Peter Kyle – one of Sir Keir’s dwindling band of loyalists – was sent on TV to say the premier was reflecting on his situation.
In his speech this morning, Sir Keir said: ‘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.
‘Six years ago, I inherited a Labour Party that was politically, financially, and thoroughly bankrupt.
‘I was told time and time again that my party was finished, that we were consigned to history, that a majority at the general election, let alone a landslide majority, was impossible, but we proved those people wrong, because we changed our party, ripping out the poison of antisemitism, restoring trust on the economy, defence, and national security, and becoming a party that once again stood proudly with, not against, our national flag.’
Sir Keir insisted that people should ‘look at what we’ve achieved in just two years’.
‘An economy that is stronger, going faster than our peers, wages rising faster than inflation in every single month since we came to power,’ he said.
‘Investment secured, infrastructure being built, an end to austerity with the fastest fall in NHS waiting lists for 17 years, the biggest improvement in rights for workers and renters in a generation.’
‘The biggest uplift in defence spending since the Cold War.
‘Small boat crossings falling, asylum hotels closing, protecting young people from social media and half a million children being lifted out of poverty because of the choices that I made.
‘Our reputation in the world restored, with Britain once again standing up for decency, respect and the rule of law, securing trade deals, standing with Ukraine, standing up for our values and rebuilding our relationship with our allies in Europe.
‘Change promised by a Labour government. Change fought for by a Labour government. Change delivered by a Labour government.’
His voice cracking, Sir Keir said: ‘I want to thank the brilliant Number 10 staff and our country’s extraordinary Civil Service who dedicate their lives to public service.
‘And when I leave the biggest job in the country, I shall spend more time on the most important job, being the best husband I can to my fantastic wife, Vic, who has been a rock by my side through good times and bad, and being the best dad I can to my beautiful children, who are my pride and my joy.’
Sir Keir is also slated to do a statement on the G7 summit in the House this afternoon, which would have been difficult unless he had provided some clarity on his intentions.
Baroness Jacqui Smith, seen as close to Sir Keir, appeared to confirm Sir Keir was on the way out as she toured broadcast studios for the Government this morning.
The education minister used the past tense as she said she ‘would have been happy for him to continue’ as premier – although she also urged people not to ‘get ahead of themselves’.
Lady Smith, a former home secretary who was elevated to the House of Lords by Mr Starmer two years ago, told Times Radio: ‘My understanding from those I’ve spoken to who are close to the Prime Minister yesterday is that he has spent the weekend thinking very carefully about the future of the country and what is the best thing to do for the British people.
‘He has also, of course, been engaged in government — responding to the terrible train crash, speaking to the chief executive of the East Midlands Ambulance Service, and responding to the attack in Edinburgh.
‘But he always thinks carefully about the future of this country and the interests of the British people — he puts them ahead of the interests of the party — and he will make his own decisions in light of what everybody can see is a considerable amount of pressure and turbulence.’
Last night Donald Trump declared Sir Keir ‘will resign’, pre-empting the announcement from No10.
The US President, who met Sir Keir at last week’s G7 summit in France, waded into Labour’s leadership crisis.
‘Keir Starmer will resign as Prime Minister of The United Kingdom,’ he posted on his TruthSocial site in his latest intervention into British politics.
‘He failed badly on two very important subjects- IMMIGRATION AND ENERGY (OPEN NORTH SEA OIL!). I wish him well! President DJT’
The PM reached the conclusion that his position is no longer tenable after talking to Cabinet colleagues, No 10 advisers, union leaders and key Labour donors.
Attention will now turn to the prospects of a Burnham administration – with the former Greater Manchester Mayor the overwhelming favourite to take over.
Mr Burnham is being urged to tear up Labour’s tax pledges to fund his costly spending plans.
While fighting for the Makerfield seat, Mr Burnham said he would honour Labour’s manifesto tax pledges, which include not raising income tax, National Insurance or VAT.
But allies of the new MP are now pushing him to drop the pledge or risk being ‘hamstrung’ in office.
Labour ministers and MPs on the Left of the party have rallied around Mr Burnham – including his right-hand woman Louise Haigh, Anneliese Midgley, who helped to run his campaign, and Energy Secretary Ed Miliband.
One pro-Burnham minister told the Daily Mail: ‘That manifesto was written at a certain point in time but so much has changed. I think Andy has an opportunity to say he’s a new PM and in order to bring about real change, it is going to require some big changes.
‘That includes on tax, where he is going to need to raise revenues to deal with the huge pressures in defence, in the NHS, in getting our high streets where they need to be… I think if we stick to those tax pledges he is going to be hamstrung from the start and people could become disillusioned very quickly.’
Toeing the line? Andy Burnham in Cheshire yesterday after his Makerfield by-election victory
The first solid sign of an announcement this morning was workers bringing out sound kit
The outgoing Greater Manchester mayor has committed to slashing business rates for pubs and hospitality venues, nationalising water, energy and transport, a massive investment in council housing and a revival of the northern leg of HS2.
Mr Burnham is yet to outline how he will pay for these promises, made in the heat of his by-election campaign, which could cost taxpayers tens of billions of pounds.
Government estimates put the cost of nationalising the water industry alone at about £100billion – meaning Mr Burnham could have to look again at the tax commitments Labour was elected on in order to find cash for his economic agenda. Last night the Tories warned Mr Burnham’s spending plans will damage the economy, as they said that he has ‘high taxes, high borrowing in his DNA’.
Shadow Chancellor Sir Mel Stride told this newspaper: ‘Andy Burnham wants to tear up Labour’s already disastrous economic legacy and go even further. This will punish hard-working people who do the right thing.
‘Rachel Reeves has raised taxes by over £60billion while letting the welfare bill spiral out of control. Burnham wants to double down on all her mistakes, with yet more taxes and more reckless spending and borrowing.’
Mr Burnham, photographed in Cheshire yesterday wearing Birkenstock sandals ahead of his return to Westminster today, spooked the financial markets last year when he said the Government should be less ‘in hock’ to the bond markets. But during his by-election campaign, he said he supported the Chancellor’s fiscal rules – U-turning just weeks after suggesting they could be changed to fund defence spending.
There are those around Mr Burnham still advocating for such a move. Lord O’Neill, a former Treasury minister, has said the Government should be ‘bolder about borrowing to invest’.
The economist, who Mr Burnham has drafted in to boost his team of advisers, suggested more could be done to ‘explore’ Rachel Reeves’s fiscal rules in order to boost spending.
UK gilt yields, which determine the cost of government borrowing, rose after Mr Burnham’s victory cleared the way for his bid to oust Sir Keir. During his campaign he was likened to Robin Hood’s ‘Sheriff of Nottingham’ after he boasted of hitting Manchester with the highest tax of any mayor.
Reform UK’s Treasury spokesman Robert Jenrick last night warned that ‘Burnham will show his true colours’ upon entering No 10.
‘Higher taxes to fund wasteful Net Zero spending, houses for illegal migrants, and benefits for those who don’t need them,’ he said. ‘Labour never changes and working Britons will be forced to pay for it all.’
Business Secretary Peter Kyle told Sky News yesterday that Mr Burnham must maintain ‘fiscal discipline’.
Ms Reeves’s fiscal rules state that day-to-day spending must be matched by tax revenues, so that Labour can only borrow to invest and not to fund spending.
