Simon Jack
Business editor

Currency is often the most sensitive to political upheaval – and you have seen the pound fall a bit over the last few days from 1.34 to 1.31. This is not huge and driven as much by dollar strength rather as pound weakness.

Government borrowing costs have also crept up very slightly over the last week but are still well below the levels we saw last month.

Bond markets remember the comments from Andy Burnham in January when that the government should not be “in hoc" to the bond markets – but he has since clarified that he would stick to Rachel Reeves fiscal rules of funding day to spending from tax receipts rather than extra borrowing.

Markets are still trying to figure out what Burnhamism or Manchesterism might mean on a national scale.

Does it mean a productive use of devolution for more regionally led growth boosting programmes by pragmatic intervention by national and local authorities?Or does it inevitably mean higher govt spending funded by higher borrowing, higher taxation or both?

Rowan Bridge
North of England reporter

Image source, Reuters

I’m told Andy Burnham thanked staff "from the bottom of his heart” as he appeared at a staff meeting this morning at the Greater Manchester Combined Authority.

He became emotional as he told the assembled crowd that the job of Metro Mayor had been the “privilege of his life".

He was given a Manchester-themed armchair as a leavening present from his mayor job. I’m told it’s embroidered with bees, the symbol of Manchester, and the Manchester skyline. It also has the phrase “we do things differently here” on it.

He has now left the GMCA offices ahead of his expected swearing in as an MP later today.

Here are some of your comments we've received on Starmer's resignation.

Lee says: "I get fed up that they keep saying that the prime minister is at fault. I blame the whole of the cabinet for bad judgement and wrong policy decisions."

Meanwhile Stephen in Chelmsford tells us he's a Conservative voter, but thinks what has happened to Keir Starmer is "morally wrong".

"The trouble with Starmer is he has no charisma," he explains. "He cannot connect with the public like the others, but I don't think he's a bad prime minister."

Elaine in Rhyl says: "If Starmer goes our country needs a general election, we should have our say."

Image source, PA Media

Green Party leader Zack Polanski says Keir Starmer "lost the confidence of the country" after he failed to challenge the establishment's "power and wealth".

Polanski says this has left "the vast majority in a cost of living crisis" as he reacts to Starmer's resignation on social media.

On Starmer's potential successor Andy Burnham, Polanski says he "must be bold or he will be bust".

"The early indications are not encouraging and suggest more of the same with better communication skills," he says.

Image source, Getty Images

Keir Starmer is a "man of great integrity who has devoted his career to public service" says Sadiq Khan following Starmer's resignation announcement.

The mayor of London says he and Starmer have been friends and colleagues since they were both young lawyers more than three decades ago.

"He is only the fifth Labour leader to have won a general election," says Khan, adding that "Starmer has made a huge contribution to the Labour Party and our country, and I want to the thank him".

He adds that the next PM must hold firm to the "progressive values our party was established to promote".

Image source, PA Media

Reform Leader Nigel Farage is calling for a general election at the "soonest possible date".

In an essay shared on X, Farage calls Starmer "the most incompetent prime minister" the UK has had.

He claims the "political class" cannot continue to betray voters, reeling off the winter fuel payment u-turn, immigration levels and the shelved Chagos Islands deal as examples of the way Labour has shortchanged those who brought them to power.

Andy Burnham, he says, would see in a continuation of Starmer's policies if he becomes the new Labour leader.

Nick Eardley
Political correspondent

What now?

There is now some space for the Labour Party to discuss just that.

Starmer has announced nominations for his replacement will open in a fortnight.

Will there be a coronation? A growing number of Labour MPs think so. The overwhelming favourite is Andy Burnham - why would anyone stand against him?

Wes Streeting has previously said he’d stand. But interestingly, some of his allies have also acknowledged he might not. Could he be offered a big job by Burnham instead?

But the current timetable leaves open the possibility that someone else throws their hat in the ring.

Could someone from the centre right feel the need to trigger a contest?

All the money though is on Andy Burnham being prime minister soon.

Image source, EPA/Shutterstock

Keir Starmer said he will ask the Labour Party's National Executive Committee that nominations for the party's new leader open on 9 July.

He said this will be completed "by the summer recess", which is a week later, on 16 July.

In the case of a contest, this will ensure a new leader is in place by the time Parliament returns from its summer break on 1 September, he said.

As we've been reporting, it's unclear if there will be a contest over the next Labour leader.

If, for instance, Andy Burnham were to run unchallenged when the contest opens on 9 July, he could become Labour leader after nominations close.

Until this is decided, Starmer will remain as prime minister.

Image source, Getty Images

Liberal Democrat leader Ed Davey says the public is "sick" of constantly changing prime ministers, following the resignation announcement from Keir Starmer.

"The British people are sick of being let down by an endless merry-go-round of prime ministers while nothing really changes," Davey writes on X.

"This time must be different. It can’t just be about changing who’s in Number 10, it has to be about changing our broken politics so we can fix our country."

Jack Grey
Live reporter

Keir Starmer says he will step down as Labour leader and prime minister after accepting that his party does not believe he is best placed the lead the country into the next general election.

Here are the key points from his resignation speech:

• Starmer described becoming prime minister was the "proudest moment" of his life

• He said he inherited a Labour Party that was "politically, financially and morally bankrupt", which he was told "time and time again" was "finished"

• His party is asking whether he is best placed to lead it into the next election, said Starmer, adding that he had "heard the answer" and "accepts that answer with good grace"

• Starmer announced he had already spoken with the King and said if there is a contest to succeed him, a new Labour leader will be in place before parliament returns in September
• The PM added that will do everything he can to ensure an orderly handover of power, and will give his successor his full support
• Getting emotional toward the end of his speech, Starmer said he would now be the best husband and dad to his "fantastic wife" and "beautiful children" - before embracing his wife and returning to No 10

Daniela Relph
Senior royal correspondent

The prime minister spoke to the King this morning to tell him he was resigning.

They spoke over the phone.

The King was at Highgrove - his estate in Gloucestershire.

Starmer says after leaving the "biggest job in the country" he will spend more time on "the most important job".

"Being the best husband I can, to my fantastic wife Vic, who has been a rock by my side through good times and bad," he says, fighting back the emotion of the moment.

"And being the best dad that I can to my beautiful children, who are my pride and joy," he concludes.

He hugs his wife before heading back inside No 10.

Image source, Reuters

Keir Starmer says he will do everything he can to ensure an orderly handover of power, and will give his successor his full support.

They know, he continues, that they are inheriting a Britain that is stronger and fairer than two years ago.

Starmer then thanks his friends and colleagues who have been by his side for six years, as well as the No 10 staff and the "extraordinary civil service".

Image source, PA Media

Starmer says he spoke to the King this morning to inform him of his decision to resign.

He has asked the National Executive Committee of the Labour Party to set out a timetable with nominations opening for the leadership on 9 July, and completed by the summer recess.

This will mean a new leader is in place before parliament returns in September.

Until then he will remain in post as prime minister, he says.

Starmer says the question his party is asking is whether he is best placed to lead it into the next general election.

He says he has "heard the answer" of his party to that question and "accepts that answer with good grace".

Every decision he says he has taken has been about "putting the country I love first".

"I will resign as leader of the Labour Party," he says.

Image source, PA Media

Before he announced his resignation, Starmer said he inherited Labour Party that was "politically, financially and morally bankrupt".

He says he was told "time and time again" that the party was "finished", but says he "proved those people wrong".

He says he changed the party by "ripping out the poison of antisemitism".

"Restoring trust on the economy, defence and national security," he adds.

Keir Starmer has announced he will resign as prime minister and leader of the Labour Party.

Keir Starmer exits No 10 with his wife to cheers and applause.

Walking up Downing Street two years ago was the proudest moment of my life, he says.

He says he came into politics for the chance to change the lives of millions of people for the better.

Starmer then outlines the journey that saw Labour take power in July 2024.

Image source, Reuters

Nick Eardley
Political correspondent

The prime minister is setting out the ways in which he changed the Labour Party.

There is no doubt the victory he oversaw at the general election was a massive achievement.

That’s why it’s so remarkable that two years on, the PM is on the way out.

Keir Starmer has stepped out to make a statement on Downing Street.

You can watch what he says live at the top of this page.