What happened?
On 15 July, Keir Starmer faced the House of Commons for his final Prime Minister's Questions. In an emotional farewell, he defended his domestic record and stated that he was proud to leave the country in "better shape than I found it".
On 17 July, Andy Burnham was officially announced as the new leader of the Labour Party, after winning the support of 379 of 403 Labour MPs. He will become Prime Minister of the UK on Monday, 20 July. Following his victory, Burnham pledged to end the “insidious briefing culture” and internal warfare at Downing Street.
What are the issues?
1. Policy U-turns, rising cost-of-living left and an isolated Starmer
Keir Starmer’s resignation as Prime Minister on 22 June came following two years of errors in judgement, compounding economic crises, and a general lack of charisma that alienated the British people. Starmer ended his term with a negative 36 per cent approval rating, according to YouGov. His policies were unpopular, with his U-turn on winter fuel payments and hikes to National Insurance facing, amid a cost-of-living crisis. His reputation collapsed following the Mandelson-Epstein scandal; his appointment of Peter Mandelson as the UK’s Ambassador to the US triggered his exit. The final nail came in May 2026, when Labour was comprehensively defeated in local elections. A string of high-profile resignations followed, with Health Secretary Wes Streeting and Defence Secretary John Healey, leaving Starmer isolated. He had no choice but to step down to prevent a massive Labour defeat in the next general election.
2. Starmer’s stellar foreign policy record amidst domestic failures
Domestic failures aside, Starmer’s foreign policy record was significant and pragmatic. He demonstrated unwavering statesmanship, as evidenced by his continued support for Ukraine and by increasing spending to GBP 25 billion. He secured a landmark deal to open GBP 78 billion in EU-backed defence contracts for British firms. Starmer also delivered the long-awaited UK-India Free Trade Agreement, significantly expanding the country’s economic partnerships. He adeptly navigated the relationship with US President Donald Trump and the United States. He helped maintain a strong UK-US partnership at a time when other European and NATO allies were struggling to do so. The UK also formally recognised the State of Palestine under Starmer, a significant diplomatic move that was backed by France and Spain. However, his positive foreign policy record could not outweigh domestic hardships. For the British electorate, successful international diplomacy and robust defence spending mattered very little when compared to rising living costs and collapsing public services.
3. Labour Party’s rapid decline in popularity and the support for Reform UK and the Green Party
Labour's post-landslide coalition quickly faltered as voters, disillusioned by inefficient, unappealing policies, began shifting toward alternative parties. On the left, the government alienated its base during the Birmingham bin strike, prompting the Unite union to slash its funding by 40 per cent. 70 per cent of the public opposed Starmer's controversial early release of thousands of prisoners to address jail overcrowding. Furthermore, 67 per cent viewed Labour's immigration strategy and climate policy negatively, criticising both the inability to halt Channel crossings and the aggressive crackdowns on peaceful climate protesters. Despite formally recognising Palestine, Starmer’s government was particularly harsh with pro-Palestine protesters, prompting severe backlash. This alienation forced a historic realignment; working-class voters surged toward Reform UK - which nearly captured the Makerfield by-election, while younger progressives defected to the Green Party.
4. Brexit, internal party coups and the UK’s political instability
The UK is now confronting its seventh prime minister in a decade, exposing deep systemic cracks within the British political system. This instability is driven by two main structural factors: post-Brexit economic stagnation and the normalisation of "internal party coups." Since 2016, successive Conservative governments failed to deliver on promises of post-Brexit economic prosperity, leaving the country trapped in low-productivity and high-inflation cycles. The parties panicked when its leaders failed to resolve these deep-rooted issues. The Conservatives normalised deposing prime ministers via internal rebellions - from Theresa May to Liz Truss, while the Labour forced out Starmer just two years into his landslide majority. Prime ministers are increasingly treated as scapegoats for deep-rooted economic and social issues that no short-term policy can easily fix.
What does it mean?
Andy Burnham has now been announced as the new Labour Party leader and will become Prime Minister on 20 July. He has to curb inflation, boost growth, and meet the challenge from Reform UK and the Greens. This means assuring the electorate of competent governance and sound policies that will make their daily lives easier. As the former Mayor of Greater Manchester, Burnham could also leverage his "outsider" appeal to win back the disillusioned working-class voters currently drifting to populist parties. But the rapid rise of alternative parties, amid an expanding distrust of establishment parties, could threaten his attempt to consolidate power.
