British Politics Is About to Get Even Messier
Subscribe to enjoy similar stories.After a week of mounting political drama, the stage is set in the U.K. for months of uncertainty over who will lead the world’s fifth-biggest economy, as unpopular Prime Minister Keir Starmer embarks on a long and messy fight for his job against the left-wing mayor of Greater Manchester, Andy Burnham.Burnham said late Thursday he planned to stand for election to parliament, opening the path for him to take on Starmer for the leadership of the ruling Labour Party.
It would mark the first time a sitting Labour prime minister has been challenged while in office.The prospect of Burnham, a darling of the Labour left who once said the U.K. needed to “get beyond this thing of being in hock to the bond market,” entering Downing Street has alarmed investors, who are now pricing in higher government spending if Starmer is booted from office.U.K.
government borrowing costs climbed Friday to their highest level since the 2008-09 global financial crisis, piling pressure onto already fragile government finances. The British pound and stocks also came under pressure.The arrival of Burnham, who has in the past said he backs nationalization of utilities and a wealth tax, and who has questioned rules constraining government spending, raises the prospect of British politics again roiling markets.
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