Politics

Copy article

Kier Starmer resigns what it means for the pound

Journalist:

ended 23. June 2026

Looking for comments on the following for a piece that is set to go live in The Sun 

Would you be free to share some thoughts on the following

  • Pound what is likely to happen before we have a new PM - will it ruin summer holidays? 
  • Markets - why haven't they moved much following the resignation - is there more to come? 

2 responses from the Newspage community

Copy all

Star Quote
Copy

Editor
Tony RedondoVerified
Founder at Cosmos Currency Exchange
For now, enjoy the sun. The Pound has so far avoided a cliff-edge drop, with Keir Starmer staying on as caretaker PM and Wes Streeting dropping out of the race — this looks more like a Burnham coronation than a hard-fought contest, an orderly succession. But the devil will be in the detail: his policies, his choice of Chancellor, and whether we get a snap general election. With UK debt-to-GDP already at 95%, talk of heavy extra borrowing, keeping Reeves on, or installing Miliband as Chancellor could easily spook the bond markets and trigger a run on the pound. Holidaymakers would be wise to secure their holiday money now while rates are steady — fireworks look likely in the coming weeks and months.
Copy

Editor
Nouran MoustafaVerified
Practice Principal & IFA at Roxton Wealth
Starmer’s resignation is unlikely to ruin anyone’s summer holiday overnight. The pound may wobble while the country waits for a new Prime Minister, but a weekend away is not suddenly going to become unaffordable because of one political announcement.

The bigger issue is what happens next. Markets have not moved dramatically because they expected political change and they still do not know the successor’s tax, borrowing or growth plan. That is why the reaction has been cautious rather than chaotic.

If the leadership contest becomes messy, or markets fear higher borrowing and unfunded promises, sterling could fall further. That would make foreign currency, hotels and spending abroad more expensive for British travellers.

But if the next leader looks credible and disciplined, the pound could stabilise quickly. Markets do not need a perfect Prime Minister. They need one who can make the numbers add up.