Overview
- Sir Keir Starmer resigned on Monday, clearing the path for Andy Burnham who is the only declared candidate and is widely expected to be installed without a formal contest once nominations open on July 9.
- Chancellor Rachel Reeves publicly backed Burnham but said she would not pre-empt who he appoints to the Treasury or other senior posts, leaving her own position uncertain.
- Media and some Labour figures have focused speculation on Energy Secretary Ed Miliband as a possible chancellor while MPs including Darren Jones have said any new chancellor must reassure markets, unions and the public.
- Burnham’s return to Westminster has already triggered local change in Greater Manchester, with Labour naming Bev Craig as its candidate to succeed him as mayor and set the stage for a mayoral contest.
- The likely leadership change has attracted attention overseas and from investors, with President Donald Trump publicly calling Burnham "extremely liberal" and commentators warning the incoming leadership must clarify fiscal and defence plans to steady markets.