Sir Keir's resignation as prime minister and Labour leader will see him remain in post until the party chooses his successor before the return of parliament in September.

Sir Keir Starmer resigned as prime minister on Monday (Image: Andrew Matthews)

Andy Burnham now looks the man most likely, and the former mayor of Greater Manchester was in Westminster on Monday to be sworn in as MP for Makerfield, after winning a by-election last week.

Burnham has already confirmed he will stand to replace Starmer, receiving the backing of former health secretary Wes Streeting, who had previously said he would stand in any leadership contest.

Rachel Reeves is expected to be sacked as chancellor by Burnham if he takes power, with Streeting being mooted as a potential contender in the race for No. 11.

Andy Burnham has confirmed he will stand to replace Sir Keir Starmer as prime minister (Image: Peter Byrne)

Former health secretary Wes Streeting (Image: James Manning)

It is the fourth time in seven years that the lectern has come out of No. 10 to announce the premature departure of a prime minister, with Sir Keir joining the likes of Theresa May, Boris Johnson and Liz Truss as the latest prime minister to be ousted by their own MPs.

For businesses, it means more political uncertainty at a time when they need clarity and stable leadership.

It was the fourth time in seven years that the lectern had come out of No. 10 to announce the premature departure of a prime minister (Image: Andrew Matthews)

The demands of the electoral cycle and the need for governments to deliver short-term impact to boost their standings in the opinion polls continue to lead to poor long-term economic decision-making.

Firms say political turmoil........

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