Keir Starmer delivers his farewell speech on Downing Street, London, after standing down as prime minister. Getty ImagesInfoAndy Burnham taking over from Keir Starmer at No 10 Downing StreetKeir Starmer was tendering his resignation as head of the British ​government ​to make way for Andy ​Burnham on Monday.The change of leadership came after an internal Labour Party revolt that ousted the 58th prime minister of the UK two years after a landslide general election victory. Mr Starmer's party was beset by internal division and had slumped to third in the polls. The decisive move against him came after Mr Burnham, the former mayor of Greater Manchester, won election to parliament in the seat of Makerfield last month. Mr Burnham is set to ⁠become the country's seventh prime minister in the ⁠past decade after being appointed ​leader of the governing Labour ​Party last week.Keir Starmer embraces Rachel Reeves, the Chncellor of the Exchequer, who is also set to be replaced in the government. Getty ImagesInfoMr Starmer sounded a sombre note on leaving, noting the country was faced with big choices on the world stage. “We face a world now where our enemies will stop at nothing to divide us, because of our values, our freedom, our decency, and frankly, because of our unflinching resolve towards the brave people of Ukraine,” he said. “Under this attack, it is vital that we remember the greatness of the Britain all around us, that while we debate how to fix our problems, there is something we inherit from our country and our character that can give us confidence that we can change our country for the better.”King Charles welcomes outgoing British Prime Minister Keir Starmer. Aaron Chown/Pool via REUTERSInfoFinancial markets are waiting on the appointment of a new chancellor to replace Rachel Reeves. UK debt yields were up marginally more than European equivalents as investors were pricing in one or possibly two quarter-point interest rates rises by the ​Bank of ‌England this year.Mr Burnham has said he will stick with Labour’s 2024 election manifesto, while pushing his priority policies, including more devolution of government, overseen by moving parts of the prime minister's office to Manchester. This would see more control over taxation as well as services such as water, energy and transport moved to regional control.The new leader has announced the biggest house-building programme since the postwar period.Mr Burnham has spoken of the need to a “10-year plan” for the country, saying the UK is “not in the right place structurally” and needed a long-term vision.His image as a “tax-raiser” have grated as “simplistic” and he has acknowledged people’s frustration over the decision freeze the cap on tax-free income at £12,570 ($17,000), suggesting he might allow the so-called personnel allowance to rise.Updated: July 20, 2026, 10:54 AM