The United Kingdom's deepening political crisis is increasing the likelihood of a leadership transition in the coming weeks that would prolong political uncertainty and market volatility, yet any new prime minister would preserve broad policy continuity and budget discipline, with differences largely bound to the pace and composition of fiscal restraint and the ambition of any EU rapprochement. U.K. Health Secretary Wes Streeting resigned on May 14, citing a loss of confidence in Prime Minister Keir Starmer's leadership, though he stopped short of launching a formal leadership challenge. Streeting's resignation letter described a government drifting without vision or direction, and pointed to Starmer's May 11 speech in response to the Labour Party's heavy losses in May 7 local elections as illustrative of those shortcomings. Doubts remain over whether Streeting has secured the 81 nominations from members of parliament needed under Labour rules to trigger a leadership contest. Pressure on Starmer...
