Burnham Set to Be Next UK PM

The Labour Party leadership race is coalescing around Greater Manchester Mayor Andy Burnham after Prime Minister Keir Starmer confirmed his resignation plans.

Chancellor of the Exchequer Rachel Reeves publicly backed Burnham, who has already signalled intentions to move parts of the Downing Street operation to the north and hinted at a new 10p income tax rate for lower earners.

However, major business groups have warned Burnham that further tax hikes could push firms 'over the edge'.

Burnham’s campaign faces pressure from unions to block Ed Miliband from becoming chancellor.