After weeks of growing speculations, Sir Keir Starmer has announced his resignation as leader of the Labour Party and as Prime Minister in a short statement on the step of Downing Street.
Sir Keir Starmer announced his resignation this morning in a short statement where he summarised the positive steps he had taken since he came into power nearly two years ago to the day. However for many weeks there had been questions about the PM's popularity and suitability for the role, including, increasingly, within his own party.
This crisis was exacerbated by the Makersfield by-election last week, which saw Andy Burnham, then still Mayor of Manchester, being comfortably elected to Parliament. Burnham is seen by many as Starmer's main rival and his likely replacement.
Starmer said: "The question my party is asking now is whether I am best placed to lead us into the next general election. I have heard the answer of my parliamentary party to that question, and I accept that answer with good grace. Every decision I have taken has been about putting the country I love first. That is why I will resign as leader of the Labour Party."
The process started by today's speech is expected to be concluded in September, when MPs return from summer recess, with the appointment of a new Prime Minister. Starmer will remain in position until then, while the Labour Party leadership process takes place.
Candidates will be able to nominate themselves between 9 and 16 July (they must have the support of 81 fellow MPs to be eligible). At this point either there is only one candidate and they become Prime Minister, or there is more than one and a contest ensues culminating in a vote by the Parliamentary Labour Party.
This resignation means that, by the autumn, the UK will have had seven Prime Ministers over the past 10 years.
One of Starmer's pledges when he came into power was the construction of 1.5 million new homes by the end of this Parliament; a target which is widely seen as unachievable by the construction industry. His premiership has also been beset by a number of crises, including the US attack on Iran, which has negatively impacted the world economy.
Reacting to the news, Brian Berry, Chief Executive of the FMB, said: "Over the course of Sir Keir Starmer's time as Prime Minister it was welcome to see a pro-building agenda placed at the heart of his government's plans. But words only go so far, and ambition has not yet resulted in delivery on the ground. Small builders continue to face tough trading conditions, with rising costs, employment troubles, planning delays, weak consumer confidence and stalling housing numbers all holding back growth.
"The next Prime Minister must keep the nation's small builders at the heart of the Government's work. They will need a much stronger focus on delivery, cutting barriers to building, and creating the conditions for small local firms, who make up the majority of the industry."
Construction entrepreneur and TrueNorth Capital Group founder Bradley Lay has warned that political uncertainty following the resignation of Sir Keir Starmer will create fresh challenges for UK construction firms already facing significant structural pressures.
Lay, who has spent more than two decades in the industry and has specialised in acquiring construction businesses over the past three years, believes the sector is entering a period where resilience and adaptability will become more important than ever.
He said: "Leadership changes inevitably create uncertainty and markets dislike uncertainty. Whenever there is a vacuum around policy, businesses delay decisions, investors become more cautious and projects slow down.
"The immediate concern for construction firms isn't necessarily who replaces Keir Starmer, it's the paralysis that leadership transitions create. Major infrastructure decisions, planning reform and investment programmes often stall while everyone waits for clarity."
Lay believes many firms are underestimating the combined impact of political uncertainty, changing cost dynamics and weaknesses within traditional contracting models.
"The reality is we're seeing three structural shifts happening simultaneously," he said.
"Firstly, political uncertainty creates hesitation across the market. Developers, investors and lenders all become more cautious when they don't know what future tax policy, regulation or public spending priorities might look like.
"Secondly, energy prices have fallen sharply following the end of the conflict in Iran, but supply chains haven't yet caught up. Tender prices are still reflecting higher material costs which creates opportunities for firms with strong supplier relationships and disciplined procurement.
"Thirdly, and perhaps most importantly, the repeated collapse of major contractors demonstrates that parts of the traditional main contractor model are fundamentally broken."
