London, United Kingdom. Britain is facing the prospect of a seventh prime minister since the 2016 Brexit vote, underscoring a decade of political instability that has raised concerns about policy consistency and economic management. Markets have so far appeared relatively calm despite the latest leadership upheaval.
Political turnover since Brexit
Labour leader Keir Starmer is the latest sitting prime minister to resign or be removed by the governing party during a turbulent 10-year period in British politics. If Andy Burnham succeeds him, he would become the seventh prime minister since Conservative leader David Cameron stepped down after calling and losing the 2016 referendum on European Union membership.
By comparison, Britain had three prime ministers in the previous decade, and two in each of the two decades before that.
Concerns over governability
The repeated changes in leadership have contributed to a growing perception that the United Kingdom is becoming increasingly difficult to govern. The main political parties are described as divided by internal factions and struggling to sustain agreement on leaders or policy direction, despite receiving mandates for five-year terms in office.
The upheaval surrounding Britain’s departure from the European Union in 2020 and the COVID-19 pandemic may explain much of the turnover in Downing Street since 2016. However, those factors were not linked to Starmer’s removal, adding to concerns about a broader pattern in which signs of mid-term unpopularity can prompt a change in leadership.
Economic implications
The continuing instability is seen as a challenge for the post-Brexit UK economy, which is widely viewed as being constrained by slow growth, weak productivity, structurally high inflation and rising public debt.
The situation has also prompted comparisons with Italy, long cited in Britain as an example of political instability. Prime Minister Giorgia Meloni’s four-year tenure will have spanned four UK counterparts. Observers have also noted that Italy’s European Union membership and entry into the euro in 1999 helped stabilize its debt after the turn of the century.
Market reaction
Despite the political uncertainty, financial markets and investors appeared relatively untroubled at the start of the week. On Monday, the FTSE 100 rose nearly 1%, UK gilt yields fell back, and the pound strengthened against both the euro and the dollar.
