Starmer Resigns as UK Prime Minister After Losing Cabinet and Parliamentary Party Support

According to Bloomberg, UK Prime Minister Keir Starmer announced his resignation on June 22, stepping down after it became clear he had lost the support of his cabinet and the broader parliamentary Labour Party — a fall from power coming just two years after he led Labour back to government with a landslide majority. Starmer said he accepted the decision with "good grace," though the emotional toll was evident as his voice broke during his farewell statement while thanking his wife and family. His wife Victoria is reported to have urged him to fight on in recent weeks, but Starmer concluded over the weekend that his position was untenable. Starmer said a new leader will be in place by September. Candidates for the leadership must secure nominations from 20% of Labour MPs, along with the support of either 5% of constituency Labour parties or at least three affiliated organizations, two of which must be trade unions. Financial markets reacted with relative calm: ten-year gilt yields were little changed and the pound held a 0.3% decline after the announcement. Traders are now focused on whether the incoming administration will reignite concerns over the UK's fiscal outlook, adding further pressure on sterling and gilts.