U.K. Markets React Calmly to Starmer Resignation, but Economic Uncertainties Linger

After weeks of speculation about Keir Starmer’s fate as Britain’s prime minister, when the moment of his resignation arrived, on Monday, the reaction in financial markets was relatively calm.

Traders appeared placated by the slight easing of political uncertainty as Mr. Starmer laid out a timeline to leave Downing Street by the end of summer. The pound recovered from earlier losses against the U.S. dollar and was trading slightly stronger. Britain’s government bonds, which had been underperforming against their European peers, fell back in line. The yield on 10-year bonds, known as gilts, dropped slightly.

The position of the next leader of the Labour Party and, therefore, prime minister, could still be contested. But the expectation is that Andy Burnham, most recently the mayor of Greater Manchester, will take up the role.

Still, there is plenty of uncertainty, especially about Mr. Burnham’s economic policies and what they could mean for the country’s finances.

Article source: https://www.nytimes.com/2026/06/22/business/starmer-burnham-chancellor.html