Starmer quits, Burnham set to lead: UK political upheaval and defence spending boost

Starmer departs, Burnham rises

Keir Starmer resigned as prime minister on Monday, triggering a rapid succession process. Labour MPs quickly rallied behind Andy Burnham, the mayor of Greater Manchester, who had just won the Makerfield by-election following Josh Simons's departure. Kemi Badenoch, the opposition leader, described the moment vividly, claiming there were

“400 knives stuck in the prime minister's back.”

Burnham, a former literature student with a working-class background, drew on the poet Tony Harrison's maxim that "your life depends on your power to master words." His "coronation" event, a mass selfie with 200 MPs in Westminster Hall, sealed his status as the presumptive next prime minister.

Defence plan: Healey out, Jarvis delivers

In one of Starmer's final acts before leaving office, the government published a long-delayed defence investment plan on Tuesday. Total extra funding over the next four years is set to rise by between £14.5bn and £15bn above previously scheduled increases, an improvement on Starmer's earlier proposal of £13.5bn but still short of the £18bn demanded by former defence secretary John Healey, who resigned this month in protest. New defence secretary Dan Jarvis reworked the blueprint to prioritise combat readiness and autonomous systems, including uncrewed ground vehicles for resupply and casualty evacuation.

Healey's demand18

Starmer's initial plan13.5

Revised plan (lower estimate)14.5

Revised plan (upper estimate)15

Healey's demand

18 £bn

Starmer's initial plan

13.5 £bn

Revised plan (lower estimate)

14.5 £bn

Revised plan (upper estimate)

15 £bn

Data from the article text

Chancellor race and tax anxiety

With Burnham's ascension all but certain, attention turns to his cabinet picks. Rachel Reeves, the current chancellor, has said she has "unfinished business" and is canvassing support, but her replacement appears likely. Financial markets have so far taken the prospect of a Burnham premiership calmly, though yields on 10-year gilts initially spiked. Tom Stevenson, investment director at Fidelity International, noted that in a leadership contest

“people are obliged to make financial and economic promises that they don't want to make.”

Wealth managers fear that Burnham, hemmed in by Labour's manifesto pledge not to raise income tax, national insurance or VAT, will instead target wealth and assets, possibly unsettling bond markets and pushing up borrowing costs. The first Burnham Budget, expected in October, is already prompting a summer of intense speculation.

Burnham's Ukraine pledge and foreign policy

Foreign policy swiftly emerged as a central theme. Yvette Cooper, the foreign secretary, said after speaking to Burnham:

“What I can say... is he's 100 per cent behind our unwavering support for Ukraine. I know he is a fundamental believer in Nato and in our shared deterrence.”

An early visit to Kyiv is being urged to demonstrate commitment, especially as Ukraine continues to hit Russian targets with drone attacks. Burnham must also manage relations with the United States under Donald Trump and reassure NATO allies that the UK will increase defence spending to 3 per cent of GDP, a benchmark demanded by Healey.

Media green paper draws fire

In a separate development, the government published a green paper on media strategy titled "Watch this space," presented by Ian Murray, minister for creative industries. The document, while aimed at bolstering public service broadcasters against streaming services, also reignited concerns over press regulation. Critics see it as a step toward government-linked oversight of news organisations, a legacy of the Leveson report that many journalists reject. The consultation sparked immediate backlash from those warning about threats to free speech.