UK's Next Leader Faces Economic Woes Despite Starmer's Stabilized Ties

Outgoing Starmer stabilised ties, but analysts say the UK’s economic problems will be the next leader’s top priority

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Published: 11:00pm, 23 Jun 2026

British Prime Minister Keir Starmer’s likely replacement could continue the outgoing leader’s pragmatic approach towards China, though addressing economic challenges at home would remain the most immediate priority, observers say.

Clearing the way for the selection of the UK’s seventh prime minister in a decade, Starmer announced on Monday his intention to step down, succumbing to mounting pressure within his Labour Party as his popularity dwindled.

Shortly after Starmer’s resignation, Andy Burnham confirmed he would run for Labour leader after returning to Parliament through a landslide by-election victory last week. Until that election, he had served as mayor of Greater Manchester since 2017.

With his main expected rival, Wes Streeting – who resigned as health secretary last month – announcing on Monday that he would back the ex-mayor, Burnham now appears likely to emerge as the sole candidate.

If there is no leadership contest, the relatively popular Burnham could take office as early as July. Should one take place, a new Labour leader would be elected and become prime minister by September.

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UK Prime Minister Starmer resigns

Public discontent with the Starmer government has centred largely on economic and cost-of-living issues, which are also likely to be the main challenges facing his successor, according to Cui Hongjian, a former diplomat and a research fellow at Beijing Foreign Studies University’s Country and Area Studies Academy.