Sterling has fallen to a one-month low against the dollar, reaching $1.33, amid escalating political turmoil within the Labour Party. Greater Manchester mayor Andy Burnham is reportedly preparing to challenge Sir Keir Starmer for the Labour leadership, triggering a wave of uncertainty in financial markets.
Burnham's Move and Government Response
No 10 has indicated it will not block Mr Burnham from standing in the Makerfield constituency to return to Parliament. This development comes as Wes Streeting dramatically resigned as health secretary, citing a loss of confidence in Sir Keir's leadership and accusing him of creating a vacuum.
Starmer Vows to Fight On
Despite the leadership challenges, Sir Keir Starmer has vowed to fight on, with allies confirming his determination to remain in office. The pound's decline reflects investor concerns over political stability and the potential for a change in economic policy direction.
The Labour leadership contest is expected to dominate the political landscape in the coming weeks, with Burnham seen as a formidable challenger who could shift the party's stance on key issues such as Brexit and public spending.
