Keir Starmer announced his resignation as UK Labour Party leader on June 22, 2026, stepping down as Prime Minister and triggering what markets are treating as yet another bout of British political instability. Gilt yields are expected to climb, the pound faces downward pressure, and analysts are already talking about a “political risk premium” settling over UK assets.
This is the sixth time in roughly a decade that a sitting UK Prime Minister has left the job early.
What happened and what comes next
Starmer communicated his decision to King Charles III and asked Labour’s National Executive Committee to arrange a leadership contest. He will serve as caretaker PM until a successor is chosen.
Nominations for the leadership race begin on July 9, with a new leader expected to be in place before Parliament reconvenes in September.
