Starmer latest: Pound plummets to one-month low after Burnham plots PM challenge

Labour Leadership Chaos 'Reminds Me Of The Conservatives', Cabinet Minister AdmitsStay on top of the latest political news with our View from Westminster newsletterGet the latest political headlines with our free emailGet the latest political headlines with our free emailSterling has slid to a one-month low as Greater Manchester mayor Andy Burnham looks set to challenge Sir Keir Starmer as prime minister.The pound plummeted to $1.33 following major resignations as the prime minister faces a leadership challenge. Sir Keir will not try to block Mr Burnham from becoming the Labour candidate in Makerfield, according to reports, after he confirmed he would seek permission from Labour’s NEC to stand.No 10 indicated to Labour MPs that it will not seek to block Mr Burnham, who wants to stand in the seat that Josh Simons is giving up to allow him to return to Parliament and to challenge Sir Keir Starmer. Earlier, Wes Streeting dramatically quit as health secretary, and is now widely expected to mount a leadership challenge. In a scathing resignation letter to Sir Keir, he said he had lost confidence in the prime minister’s leadership and accused the PM of creating a vacuum where the country needed a vision.But Sir Keir has vowed to fight on, Downing Street has said.Work and pensions secretary Pat McFadden, one of Sir Keir's closest allies, said he was determined to stay on in No10 and had a “deep sense of duty to the country”.Angela Rayner also did not rule out running in a Labour leadership race.Analysis: Pound weakening could have knock-on effect on domestic companiesThe Independent’s Business and Money Editor Karl Matchett reports:The pound has dropped by almost 0.2 per cent against the US dollar this morning, bringing the rate to 1.3370 and levels not seen in just over a month. Indeed, the downturn over the past three days means the pound is now lower against the dollar than it was at the start of the year. The leadership challenge to Keir Starmer is playing a big part, with the uncertainty over who might emerge successfully spooking markets, which typically hate not knowing which way policy will go, with there being concerns from that area that Andy Burnham, for example, may prove to be a fiscally looser option to lead the way - and with there being a long way to go yet before he can challenge anyway.If this becomes a prolonged state weakening the pound, one potential knock-on effect is domestic companies being snapped up by those from overseas, as Susannah Streeter, chief investment strategist at Wealth Club explained."The pound is feeling the pain, amid the pile-on of uncertainty about the UK’s political future. It’s weakened to trade around the lowest level in more than a month, at $1.33, and has also slipped against the euro. This fall in sterling is set to make British companies more attractive takeover targets," she said.Bryony Gooch15 May 2026 08:45Sterling slides to $1.33 amid leadership strugglesPound Sterling has plummeted to a new one-month low of $1.33 as traders show concern around challenges to Sir Keir Starmer’s premiership.(Trading Economics)Bryony Gooch15 May 2026 08:32Newly appointed health secretary James Murray arrives in Downing StreetHealth Secretary James Murray has arrived at Downing Street.Mr Murray smiled and said “good morning” to members of the press, but did not answer a question about Sir Keir Starmer’s future.(Getty)Bryony Gooch15 May 2026 08:30'I would happily campaign for Andy Burnham', Cabinet minister saysThe Independent’s political correspondent Millie Cooke reportsA Cabinet minister has insisted he would "happily campaign for Andy Burnham" in Makerfield, as the Mayor of Greater Manchester begins his bid to become Labour leader.Steve Reed told Times Radio: "We've got a few hurdles to go through haven't we? First of all it's for the Labour Party members in Makerfield to choose who their candidate is. I will then be backing whoever our candidate is so will the rest of the Labour Party and we will do our very best to make sure that we win that by-election whether the candidate is Andy or anybody else who might put their name forward."Asked whether Mr Burnham would be his preferred candidate, Mr Reed said: "Well it's not for me to choose. It's for the Labour Party members in Makerfield. I would be very happy if it was Andy Burnham and I would happily go up and campaign for him as I would for any other candidate selected by local Labour Party members."He added: "I will be doing my best to back the Labour candidate whoever that may be both in the by-election for Makerfield and if that's Andy then in the by-election for the mayor of Greater Manchester."(Reuters)Bryony Gooch15 May 2026 08:15Housing secretary urges Labour to stick to the 'country first, party second' philosophyHousing secretary Steve Reed urged Labour to stick to the “country first, party second” mantra which Sir Keir Starmer said time and again during the general election campaign, amid challenges to the prime minister’s leadership.Mr Reed told Sky News: “Country first, party second was one of the most important things we said in that general election. Now at this very difficult moment, we have to make sure we stick to that.”The senior cabinet minister earlier warned Labour MPs against triggering a leadership contest, telling Sky News: “You don’t have to imagine what would happen, because we just have to look back at what the Conservatives did.“I think over the eight years between 2016 and 2024 we had nine education secretaries, seven chancellors of the exchequer, and five prime ministers, and it led to their worst election result in 200 years.“Last week we did badly. The Conservatives went further back from that dreadful general election result. Do we really want that to be our future?“We’re in power. We were sent here by the British public to deliver change. We promised the fastest growing economy in the G7, this first quarter this year. We’ve done it. We promised to cut NHS waiting lists. Yesterday we saw the biggest monthly fall for 18 years. Why would we throw that away to engage in the chaos that consumed the Conservatives?”Bryony Gooch15 May 2026 08:12No candidate has backing of 81 MPs, Cabinet minister saysThe Independent’s political correspondent Millie Cooke reportsNo candidate has got the backing of 81 MPs, the housing secretary has said, amid growing threats to Sir Keir Starmer's leadership.After an extremely turbulent few days for Labour, Steve Reed told Times Radio: "It remains the fact that there is no challenger. No one has gathered 81 nominations to mount a challenge against the prime minister. He remains our prime minister.“My job, his job, everyone else's job is to get on and deliver the change we were sent here to deliver...We have to focus on the British people not talk to ourselves."Bryony Gooch15 May 2026 08:01Analysis: Streeting resignation deepens Starmer's leadership crisisStreeting resignation deepens Starmer's leadership crisisBryony Gooch15 May 2026 07:57Whole Labour Party will get behind Makerfield by-election candidate, Cabinet minister saysThe Independent’s political correspondent Millie Cooke reports:The "whole Labour Party will get behind" the candidate in the Makerfield by-election, a Cabinet minister has said, insisting that Sir Keir Starmer thinks Andy Burnham should be allowed to go forward as a candidate.It comes after the Mayor of Greater Manchester announced his intention to stand in Makerfield following Josh Simons' resignation.Housing secretary Steve Reed told Sky News: "Well Josh is standing down, and that's a decision for Josh. So, Labour Party members in Makerfield will choose from a range of candidates who will put their names forward who they want to be their candidate in the by-election. Then the whole Labour Party will get behind that candidate, and we'll do our level best to ensure that they get elected to parliament."He added: "The prime minister has made clear his judgment is that Andy should be allowed to go forward to be a candidate."Bryony Gooch15 May 2026 07:56Labour leadership chaos 'reminds me of the Conservatives', Cabinet minister admitsThe Independent’s political correspondent Millie Cooke reports:A Cabinet minister admitted that the Labour leadership jostling that has unfolded over the last week "reminds me of what went on under the Conservatives", saying the government must "get on and deliver" rather than "talk to ourselves".Steve Reed told Sky News: "It's not a good week that we just had. Let me put that on the table straightaway.“It reminds me of what went on under the Conservatives. I think we need to draw that to a close as quickly as possible.“But just yesterday, my department launched into Parliament the Social Housing Bill that reforms right to buy, so that councils can go ahead and build the council homes that we need in this country to solve the housing crisis.“Last year we built more council homes in this country than we built in any single year for 35 years. That is the kind of change we need to get on and deliver, because that is what the British public sent us here to do, not talk to ourselves."Bryony Gooch15 May 2026 07:50Minister acknowledges Starmer's 'unpopularity' - but urges Labour not to copy the ToriesSir Keir Starmer is “unpopular”, one of his allies in the Cabinet acknowledged amid a gathering race to replace him, while insisting Labour should not repeat the pattern of changing leaders which engulfed the Conservatives.Housing secretary Steve Reed told Sky News: “The prime minister is unpopular, but each of the last four prime ministers in turn have been the most unpopular prime minister we’ve ever had.“What happens when you’re the leader of the government at a time when the public are so angry with the state of our public services and the economy, is it focuses down on that individual.“So we can either copy the Tories, they doom scrolled through leader after leader, five I think, in eight years, prime ministers. It didn’t help them one jot.“What we need to do is all of us come together behind the prime minister and focus on how we can deliver the change the British public want to see faster.”Bryony Gooch15 May 2026 07:46

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