U.K. Prime Minister Keir Starmer has announced that he will step down as Labour leader and Prime Minister, following months of political pressure and growing dissatisfaction within his party.

Speaking outside 10 Downing Street on Monday, Starmer said he would remain in office until Labour completes the process of selecting a new leader. He described becoming prime minister as the proudest moment of his life and highlighted achievements during his time in office, including efforts to attract investment, improve workers’ rights, and strengthen Britain’s international standing.

However, Starmer acknowledged concerns from Labour lawmakers about his leadership and accepted their view that a change was needed ahead of the next general election. His decision comes after Labour suffered significant losses in local elections and faced increasing criticism over government policies, including fiscal decisions and welfare reforms.

The resignation marks a dramatic turn for a leader who secured a landslide election victory in 2024, returning Labour to power after 14 years in opposition. Despite holding a large parliamentary majority, his government struggled with falling poll numbers, internal divisions, and public frustration over economic challenges and the rising cost of living.

Attention is now turning to who will succeed him. Former Greater Manchester mayor Andy Burnham has emerged as a leading contender after a strong recent election performance. Burnham has indicated that he intends to seek the party leadership and has called for an orderly transition process.

Financial markets reacted cautiously to the news, with investors assessing what a change in leadership could mean for Britain’s economic policies. Analysts noted that concerns over government borrowing, inflation, and economic growth remain key issues facing the country.

Starmer’s departure means Britain is set to have its seventh prime minister in the decade since the 2016 Brexit referendum. The period has been marked by political instability, with leaders from both major parties leaving office amid electoral setbacks, internal party disputes, or economic challenges.

Labour is expected to begin the formal process of selecting a new leader in the coming weeks, with Starmer remaining in office until a successor is chosen.