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City AM

As it happened: Stocks mixed as Trump warns takes ‘two to tango’ on Iran peace As it happened: Stocks mixed as Trump warns takes ‘two to tango’ on Iran peace Replace Reeves if Starmer goes, voters tell Labour Right to Buy has been a huge success, of course the left hates it Regional bond revolution risks making Britain more unequal and less prudent Labour may not agree with Blair, but the public does… The world can’t keep consuming more than it produces If performance matters more than privilege then prove it Wayve: London robotaxis will make passengers forget there’s no driver Mandelson Files add insult to injury, but the patient was already beyond saving Blackstone Raises its Largest Asia Private Equity Fund at $13.1 Billion Pension master trusts join forces to tackle outdated transfer systems Iran ‘pulls out of talks with US’ and threatens to strike Israel Anthropic files for IPO as race with OpenAI heats up ‘Be more Trumpian’ – Mandelson discussed dire economy and ‘lack of verve’ with key Starmer ally Deloitte UK appoints first chief AI officer in drive for ‘AI-enabled’ services Private credit is crowded — but disciplined capital still knows where to look Squash players turn to social media to cash in on LA Olympic Games opportunities Interactive Brokers Integrates AI into Client Portfolios – Informed by Agentic Technology, Controlled by the Client WWEX Group and Auctane Complete Merger, Creating Leading Logistics Provider ShipStation Global Sadiq Khan: London tech boom can weather ‘dizzying’ AI risks New mixed gender trophy introduced for coming Hundred season Labour voters lead AI adoption as public remains split on impact North Highland Names Anthony Shaw Global Chief Executive Officer Vyond Appoints SaaS Industry Veteran Scott Ernst as Chief Executive Officer Winston Taylor Completes Historic Transatlantic Combination M&S chief’s pay slashed by £3m after cyberattack turmoil Inside Celonis, the German tech unicorn that won over a fifth of the FTSE 100 Stop and think before asking for a bigger salary Brits back Blair’s growth calls – yet are squeamish over welfare cuts
Burnham might lift Labour
Christian May · 2026-06-23 · via City AM

 |  Updated: 

Andy Burnham returns to Westmineter
Andy Burnham gets a hero's welcome from Labour MPs. Pic: Yui Mok/PA Wire

It was a little under two years ago that Keir Starmer stood outside 10 Downing Street and declared that his new government would “end the era of noisy performance [and] tread a little more lightly on your lives.”

It was a bold ambition and, after a shambolic end to Tory rule, a welcome one. Was it also an unrealistic one? An undeliverable pledge? There is a view that Britain has become almost impossible to govern. Our problems are too deep and the nation is too divided. I do not subscribe to this view. To do so would absolve our leaders and political parties of responsibility.

Starmer has been forced out not because he faced an impossible task but because he proved to be a failure. His inadequacies caught up with him. I’d like to think that Labour MPs turned on their leader because they grew impatient at the lack of economic growth or because they think he went too far in taxing businesses, but the truth is they turned on him because his unpopularity looked set to cost them their jobs. Or as Starmer put it in his resignation speech: “The question my party is asking now is whether I am best placed to lead us into the next general election [and] I have heard the answer of my parliamentary party to that question.” Such understatement!

Burnham won’t be able to cut welfare even if he wanted to

Starmer said that walking up Downing Street in July 2024 was “the proudest moment of my life” and, as his voice broke, it was clear that standing down will count among the most painful. But he never met the moment. His bland, technocratic approach to politics – and to his own party – meant he was never going to be loved, but while Labour MPs cried out for someone with a little more charisma the rest of the country needs someone capable of taking tough decisions on spending and welfare while supporting private enterprise and easing the crippling tax burden. Will Andy Burnham be that person? Don’t bet on it.

Makerfield’s new MP may not have come to Westminster with a manifesto but he brings plenty of baggage and some dangerous ideas. Who in their right mind would diagnose this country’s challenges and conclude that the problem is our energy companies aren’t owned by the state? He won’t be able to cut welfare even if he wanted to, and he’s surrounded by MPs and advisers clamouring for higher taxes. He may enjoy a brief honeymoon but reality will hit him before the nights draw in.

At that point Labour, and the country, could be back to square one.