Client Update - 26th June 2026

Oh, for a quiet life. Sadly, there is no chance of that in UK politics as we have the certainty of soon welcoming our 6th Prime Minister since 2019. Andy Burnham returned to Parliament on Monday, and before his train had even arrived in London, Sir Keir Starmer had resigned as leader of the Labour party and therefore also given notice on his time as UK Prime Minister. Burnham is the anointed successor, with his by-election victory widely interpreted as a sign that Labour supporters want clearer direction and more forceful leadership.

Burnham is associated with themes such as regional investment and public service reform. These are expected to influence future policy discussions, so it will be telling, assuming he becomes Prime Minister, to see what he decides to implement.

Senior Labour figure Wes Streeting urged the Prime Minister to set out a timetable for transition but did not enter into a leadership challenge this week, so we wonder what role in the new government he has already been offered. The key choice is Chancellor and Rachel Reeves days are certainly numbered. As I have written many times, we are in desperate need of a plan for growth, and this is probably the last chance Labour have to try and build one in this Parliament.

Streeting’s support of Burnham reduces the likelihood of a prolonged or divisive leadership contest, which is mainly responsible for the recovery in UK markets since Monday. Leadership transitions often generate headlines, but they do not usually lead to sudden policy shifts. Any major changes would be announced well in advance and the signals are that Burnham has learnt from Starmer’s mistakes, as he has already secured expert advice on economic policy.

Andy Haldane, former Bank of England chief economist is now a key adviser to Andy Burnham, and he has signalled that the new government must prioritise radical tax simplification, regulatory easing, and tight control of public spending to restore UK growth and market confidence. He described the UK tax system as “stupendously complex” and argued that simplifying business, personal and property taxation could be achieved at “close to no fiscal cost”. Haldane also criticised the “thicket of regulation” facing companies and said the UK retains a “slightly anti business culture”.

For financial markets, Haldane warned that rising public expenditure is the UK’s “fiscal Achilles heel”, stressing that investors need clear evidence of spending discipline. I am not sure that we would disagree with that.

Assuming Andy Burnham does become the UK’s next Prime Minister, we have one last hope of a sensible growth plan, but whether common sense is alive and well in Westminster, remains to be seen. Do have a good weekend.