Sir Kier Starmer’s resignation – a view from our CIO

Following the announcement that Sir Kier Starmer is resigning as UK Prime Minister, Adam Ruddle, LV= Chief Investment Officer, shares his thoughts

“Markets have reacted calmly to the news of Sir Kier Starmer’s resignation, which was widely expected. Sterling moved only slightly, while gilt yields and the FTSE remained steady. Attention has now shifted to the likely successor, with Andy Burnham strongly in focus, alongside the direction of future economic policy.  

“Fiscal discipline will be key. While the pound has already softened in recent weeks, its next move, and broader UK asset performance, will depend on how credible and controlled the incoming leadership’s plans appear. A commitment to clear fiscal rules could help maintain market stability, whereas signs of more government intervention policies may put pressure on sterling and push borrowing costs higher.

“Importantly, our portfolios remain well diversified across regions and asset classes, positioning them to better handle fluctuations in UK markets. We continue to monitor developments closely alongside our primary asset manager, BlackRock, to ensure we respond appropriately as the situation evolves. Please remember that the value of investments can fall as well as rise, and you may get back less than you invest.”