Keir Starmer's Resignation: The Labour Collapse and the Energy Trap That Trump Foresaw
On Monday, the UK political landscape was shaken by the resignation announcement of Prime Minister Keir Starmer. He is stepping down as head of government and leader of the Labour Party amid an unprecedented domestic crisis and a crushing defeat in the May local elections, where the party lost over 1,000 seats in local councils. Around 100 Labour MPs officially demanded he step down.
Notably, this move was publicly predicted by Donald Trump just a day before the official announcement. In his Truth Social post, Trump directly pointed to the failure of Starmer's immigration and energy policies, urging Britain to lift the ban on North Sea drilling. His criticism proved prophetic.
Energy collapse and rising prices
A key mistake of the Starmer administration was a decision made in November 2025: the UK became the first major global economy to ban the issuance of new licenses for oil and gas extraction in the North Sea. Supporters of this move saw it as a path to "green" energy. However, reality proved harsh. Due to a geopolitical conflict with Iran that began in early 2026, the price of Brent crude soared from $73 to nearly $114. Regulator Ofgem has already announced a 13% increase in household bills from July — the average annual payment will rise from £1,641 to £1,862.
Research from the Oxford Smith School shows that even full-scale North Sea extraction would have reduced bills by only £16–82 per year. The problem is that oil is a global commodity, and its price does not depend on its origin. The extraction ban did not protect Britons from price spikes but only made the country vulnerable. Trump warned of this vulnerability as early as May 2026.
Change of course: Crypto turn?
Amid the resignation, the main contender for the Labour leadership is Andy Burnham, who won a by-election in Makerfield a week earlier with 54.8% of the vote. His stance sharply contrasts with Starmer's course. Burnham publicly supports the development of digital assets and Web3 technologies, stating his intention to make Manchester a hub for the crypto industry.
This is a stark departure from the policies of the Starmer government, which in March 2026 imposed a moratorium on cryptocurrency donations to political parties. British voters interested in cryptocurrencies are closely watching whether Burnham will change this course if he wins.
Cryptalist expert opinion: Starmer's resignation is not just a political changing of the guard. It is a clear signal of the failure of policies that ignore market realities. The rise in energy prices, driven by geopolitics, acted as a catalyst that exposed fundamental errors. For the crypto community, there is an important nuance here: Burnham's potential rise could radically change the regulatory climate in the UK, transforming it from one of the strictest markets into a potential hub. This event could have long-term implications for the global perception of digital assets.