The resignation of Sir Keir Starmer as Prime Minister marks a decisive turning point for the UK. This is an opportunity to continue the policy objectives on which the Labour government won in 2024, but to correct the missteps which have frustrated electors and failed so far to ignite economic growth. It looks as though the next Prime Minister will be Andy Burnham, and we hope that the optimistic and collaborative style that he has developed as Manchester Mayor will help him deliver the growth and the public services that are now needed for the whole of the UK.

The international environment continues to be chaotic and provide economic and military threats against which the UK needs to be prepared. In addition, climate change is upon us and the possibility of further pandemics looms large. So, there is every incentive for a revamped government to act boldly. We suggest the following agenda items:

The economy - vigorously explore rapid re-integration with the EU as the only action that can quickly improve our economic circumstances.
Defence - recognise the current urgency of more funding; the opportunity that this will provide, and the likely spur to innovation - Mark Carney, PM of Canada, and Luc Frieden, PM of Luxembourg, have tabled a well argued potential solution based on setting up a new international Defence, Security and Resilience Bank (DSRB)
Business and Trade - support more strongly some sectors in which the UK excels and could quickly bring cash into the economy, for example, tourism, higher education and media & entertainment.
Electoral reform - rapidly evaluate whether proportional representation would improve fairness to voters, and give confidence to the EU and business investors that UK economic policies would be resistant to future populist shocks.
Civil Service reform - accept that the current departmental system is not working and reorganise into perhaps three groups presided over by the cabinet office and with the Treasury taking a more conventional accounting role rather than second guessing departmental plans.
Last month, amid the local elections and leadership uncertainty, we held only one meeting, on UK-EU reset priorities. In July we will be discussing how Europe can compete with US innovation. Our research projects for this summer will cover meeting our housing and climate change targets, as well as the contribution of public services to a buoyant economy, and competing with the US on innovation. We are planning an extensive roundtable programme for the rest of 2026.

Turning point