The news of Keir Starmer’s resignation has been met with a mix of relief and uncertainty by retailers across the UK, many of whom have found trading conditions increasingly challenging since Labour came to power. But what happens next?
Consumer confidence fell sharply in April, driven in part by the conflict in Iran, and with the energy price cap set to rise by 13 per cent on 1 July, it is difficult to see sentiment improving in the short term.
Unemployment is also having a significant direct and indirect impact on retail. UK retail employment has fallen to its lowest level on record, with some attributing this, at least in part, to the National Insurance contribution changes introduced by Labour in April 2025.
More broadly, many sectors across the UK are implementing hiring freezes or actively reducing headcount, with businesses citing rising employment costs and changes to employment law as major concerns.
The big question now is: who will become the next Prime Minister, and how will they begin to reignite the UK economy?
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