# Sir Keir Starmer resigns as Prime Minister with Andy Burnham poised to take over

By Susannah Streeter — 2026-06-22

Susannah Streeter, chief investment strategist at Wealth Club, said: “Andy Burnham looks set to become Britain’s seventh Prime Minister in around a decade, a remarkable level of political upheaval for a developed economy.

“Combined with the lingering effects of Brexit, the revolving door at Number 10 has tarnished the UK’s reputation as a stable place to do business and made it harder to attract the long-term investment needed to drive stronger economic growth.

“His resignation has kicked off another round of speculation about the direction of policy ahead. The pound is languishing at multi-month lows, borrowing costs remain highly elevated, and the domestically focused FTSE 250 has sunk further into the red. While some uncertainty may be easing as Burnham’s path to Number 10 appears increasingly clear, he’s an unproven economic force and so uneasiness looks set to linger.

“Andy Burnham has tried to reassure markets by signalling that he will largely stick to fiscal rules and take a more cautious approach to spending. He also appears willing to tackle the UK’s large benefits bill, arguing that welfare reform should focus on helping more people into work.

“Investors will also be scrutinising how Burnham’s interventionist instincts translate into national economic policy. He has argued that the government should play a more active role in shaping economic outcomes, particularly through greater investment in regions outside London and the South East.

“He is also expected to push for further devolution of economic powers and has indicated support for a stronger public role in key sectors and infrastructure. However, concerns are bubbling that greater state involvement could deter private investment if it creates additional costs or regulatory burdens.

“The latest government borrowing snapshot highlights the tricky fiscal backdrop he inherits. UK borrowing increased in May by almost a third compared with the same month last year. It underlines the need to keep bond markets on side and demonstrate that policies are aimed at bringing down long-term borrowing, alongside credible plans for reviving growth.

“The economy is in desperate need of fresh investment to improve productivity, stimulate business activity and raise living standards. Targeted investment, particularly in infrastructure, innovation, skills and fast-growing companies, will be crucial if the UK is to break out of its sluggish growth cycle.

“The recent House of Commons report on investing in the UK highlighted concerns that the country is not doing enough to channel capital towards domestic growth companies. Creating stronger incentives for investors to back innovative UK firms could become an increasingly important part of any strategy aimed at reviving economic growth, boosting productivity and improving the country’s long-term competitiveness.

“A first step should be reversing the damaging decision to cut relief on investment in Venture Capital Trusts. VCT business through Wealth Club, the largest broker of VCTs, is down 46 per cent since April, when the changes came in, compared to the same period last year.

“Ultimately, Burnham’s challenge will be convincing investors that a more interventionist approach can sit alongside more discipline with spending and pro-growth policies. After years of political chop and change, investors are likely to place a premium on stability, credibility and a clear long-term economic strategy.”

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