A grim week for Starmer – but things could be about to get worse

Political turmoil around Prime Minister Sir Keir Starmer — driven by renewed fallout from Lord Mandelson’s vetting and related civil service rows — is increasing uncertainty ahead of next week’s elections in Scotland, Wales and many English local authorities. Cabinet unease, public comments from senior Labour figures and the prospect of renewed leadership questions raise the chance of heightened political risk and market volatility for UK-focused assets. For the UK 100 (FTSE) this suggests a near-term negative bias as investors price in policy uncertainty, potential distraction from the government’s agenda and the risk of weaker electoral outcomes; volatility could rise if leadership pressure intensifies after the ballots.