One of the most pressing issues facing Andy Burnham if he becomes prime minister is the government's Defence Investment Plan.

John Healey resigned as defence secretary earlier this month, claiming the draft government proposals would take UK defence spending to 2.68% of GDP by 2030, falling "well short" of the 3% target he considered necessary.

Speaking to the Times a day after Healey's resignation, Burnham said alongside the 10-year approach to defence and security, there needed to be reform of public investment and procurement.

He told the newspaper that this would reduce the welfare bill by bringing recipients into the workforce, ensuring more money was available for defence.

"I am not squeamish about saying that the plan would be to reduce the welfare bill," he said.

Image source, House of Commons

More from the House of Commons, where Shadow Defence Secretary James Cartlidge says the Defence Investment Plan (DIP) should be the "top item" for Andy Burnham if he becomes prime minister.

Cartlidge says the government has "dithered and delayed" around publishing the funding proposal, which has been a flashpoint for the Starmer government.

Not knowing who will be the next prime minister creates "massive uncertainties" for the defence industry, Cartlidge says.

He adds he was "incredibly worried" by John Healey's resignation as defence secretary earlier this month - saying that warfare is changing fast, and the DIP needs to be implemented as soon as possible.

Image source, House of Commons

We've just heard from Chancellor Rachel Reeves, who says in the Commons that she is "confident" the Defence Investment Plan (DIP) will be published before the upcoming Nato summit - which begins on 7 July.

She adds that the plan "will meet the scale of the challenges facing the country".

Reeves tells MPs she met on Monday with Defence Secretary Dan Jarvis and Chief of the Defence Staff Richard Knighton "to talk through" the plan.

"It will involve more money spent more effectively and will meet the scale of challenges facing our country," she says.

• Reminder: Former Defence Secretary John Healey resigned in protest earlier this month, saying that the proposed DIP "falls well short of what is required for defence and the country at this dangerous time".

Brian Wheeler
Political reporter

The government has announced that there will be no new “major policies” or spending decisions during the transition to a new prime minister.

Keir Starmer told a cabinet meeting this morning that he wanted an orderly transition of power and he would give his full support to his successor.

The head of the civil service has written to the heads of all departments to tell them to follow the established procedure for a change of PM.

“The prime minister has agreed that there will be no new major policy or spending commitments initiated during this period,” his official spokesman told reporters earlier.

But – crucially – this does not appear to include the much-delayed Defence Investment Plan, which ministers are insisting will be published before the Nato summit on 7 July.

Asked if the ban on new policy announcements meant the government faced paralysis, the spokesman said ministers remain in place and “the normal business of government continues”.

Image source, EPA/Shutterstock

Former Armed Forces Minister Al Carns says he has not ruled out launching a leadership campaign and the decision is based on "multiple factors".

Speaking to journalists at the Foreign Press Association in London, he says: "I just need to see and buy into that vision and that policy and then we’ll see where we go from there."

Carns says Burnham would "listen" to the Parliamentary Labour Party and "he’ll take advice on policy ideas".

"And hopefully he’ll be able to drive them forward at a pace and with the boldness and courageousness that is required to keep that social cohesion and make us successful in the 2029 general election."

But he adds: "A vision without a plan is a dream and if you don’t have it, it can turn into a nightmare pretty quickly."

Who might be chancellor if Rachel Reeves follows Starmer out of Downing Street?published at 12:19 BST

12:19 BST

Mitchell Labiak
BBC Business reporter

Image source, PA Media

As Keir Starmer prepares to leave Downing Street, there is speculation that his Chancellor Rachel Reeves may follow him - if Starmer's successor opts for someone new. Here's some of the names believed to be in the running for the job.

Wes Streeting: Instead of pitching himself for the leadership role, Streeting has backed Burnham and could be awarded the number two job in British politics for his loyalty.

Ed Miliband: Somesee Miliband as an inflation risk, believing his drive for net zero as energy secretary is partly responsible for the UK's high energy prices compared to other countries. But others think he could gain the confidence of the markets with his "intellect, experience, and authority".

Pat McFadden: He's held shadow Treasury jobs, been a business minister in a Labour government and is the current work and pensions secretary. His experience in the latter could help tackle welfare reform.

Yvette Cooper: She has years of experience in government, and served as chief secretary to the Treasury under Gordon Brown.

• We've more on the list of candidates - and how Rachel Reeves might stay on in the role - in our news story

Manish Pandey
Live reporter

Image source, EPA/Shutterstock

• Starmer announced his resignation shortly after 09:30 BST on Monday, confirming that a new leader would be in place by 1 September - though it could be sooner if there's no contest
• In an emotional speech, he paid tribute to his family - and later in the evening, Starmer and his wife, Victoria, hosted drinks for staff in the No 10 garden
• Meanwhile, Andy Burnham - after boarding a train from Manchester Piccadilly to London Euston to be sworn in as MP - announced his intention to run to replace Starmer - but told the BBC it was too early to think about calling an election
• By this point the former Greater Manchester mayor had gained the support of former Health Secretary Wes Streeting, and was later pictured surrounded by hundreds of Labour MPs at Westminster Hall

• So far today, the big question is - who will be the next PM and how they should be chosen?
• Darren Jones and Al Carns are weighing up whether to challenge Burnham, but, for now, it feels unlikely either would get the required 81 nominations, says our chief political correspondent
• Some Labour MPs have been calling for a contest, while others say it's important to get a new team in place quickly

• Ministers have been at Downing Street this morning for the first cabinet meeting since Starmer's resignation. The mood in the room will have been radically different, writes Henry Zeffman

Questions multiply for the man tipped to replace Starmerpublished at 11:05 BST

11:05 BST

Chris Mason
Political editor

Image source, Reuters

Andy Burnham would be the UK's fifth prime minister in four years.

The photographs of the new MP for Makerfield beaming in the presence of hundreds of Labour MPs sit alongside the images of Sir Keir and his wife, both emotional, in illustrating that brutal transfer of power.

But after the theatre and drama of Monday, the hard questions for the Labour Party and for Burnham beckon. And some are already worried. They fret about what all this looks like.

A bloke who wasn't even a parliamentary candidate at the last general election and wasn't even an MP this time last week, could be prime minister by this time next month.

"And remember he's run for the Labour leadership twice before and lost," one minister pointed out to me, adding: "And not only that. He lost to two losers – Ed Miliband and Jeremy Corbyn."

So what is driving Burnham's current magnetism? In short, he is seen as a winner and Starmer is seen as a loser.

And not just any winner – a winner against Reform UK, in a part of the country where Reform did very well in the English local elections last month.

Without question, Burnham didn't choose an easy seat to contest to return to Parliament. But it is also true to say that he is very popular in Greater Manchester and his popularity remains largely untested beyond.

"It feels like lots of Labour MPs are dashing for a train that's about to leave the station, but they haven't any idea where it's going," is how one figure put it to me, suggesting there is still plenty the party and the country doesn't yet know about Burnham's prospectus for government.

• Read on for more on Andy Burnham's plans if he enters No 10

Henry Zeffman
Chief political correspondent

Cabinet ministers are just beginning to leave the regular weekly cabinet meeting - one of Keir Starmer’s last.

This is usually a big moment in the week of the government, for signalling the prime minister’s priorities and bringing secretaries of state together.

The mood today will have been radically different, no doubt.

Power has now drained from this cabinet. Several will be hopeful of keeping their jobs - indeed any job - under the new regime, but the numerical reality is that many of them will be sent to the backbenches.

And in many parts of government, business is likely to slow as ministers and civil servants alike prepare for what comes next.

Image source, Getty Images

We're now seeing members of Keir Starmer's cabinet leave Downing Street.

We'll keep you updated on any statements we get from Tuesday morning's meeting, which lasted just over an hour.

Image source, EPA/Shutterstock

As we've been reporting, Darren Jones, a senior cabinet minister, and Al Carns, who quit as a defence minister a few weeks ago, are both considering a leadership challenge.

Lord Philip Hunt, who served alongside Andy Burnham in Tony Blair and Gordon Brown's cabinets, says "Andy is a lovely guy" but "I really love Al Carns and I think he'd be an exceptional choice as leader".

Speaking to BBC Radio Ulster, Hunt says Darren Jones is also "a very credible candidate".

"He [Burnham] was a great colleague, friendly, personable, bright, a very good communicator as we can all see," he says.

Hunt endorsed Burham, saying the "entire Labour party wants him to succeed", but added that "stepping up to the top job brings its own pressures", and he would face a "very tough challenge" if he becomes the next Labour leader.

Image source, Anadolu via Getty Images

Reform UK leader Nigel Farage believes Andy Burnham won't have "a mandate" if he becomes prime minister and says there should be a general election.

Speaking to BBC Radio 4's Today programme, Farage says: "I have absolutely no idea where Andy Burnham stands on anything.

"The British public are pretty sick of the game of musical chairs that's been going on in No 10 now for the best part of the decade and they deserve to have a general election."

Farage says that a prime minister "has to have a mandate from the people", but Burnham "didn't even stand in the 2024 general election, so he's not tied to that manifesto personally in any way at all, and if it is a coronation he will have no mandate whatsoever".

Image source, Reuters

Ministers have arrived at Downing Street for the first cabinet meeting since Starmer's resignation.

Chief Secretary to the Prime Minister Darren Jones, who is said to be considering a leadership challenge, was seen smiling at the cameras as he arrived for this morning's meeting.

Conservative leader Kemi Badenoch says she felt sympathy for Keir Starmer on a human level, but he "wasn't doing the job properly" as prime minister.

"The problem isn't just him, it's the whole Labour Party," Badenoch tells BBC Breakfast, adding that the party "held him hostage" and wouldn't let him make "the tough decisions" needed.

When asked about the turnover of prime ministers under the Tories, Badenoch says Starmer had the "same problem", as winning elections "is not the same thing as running the country".

When it comes to Andy Burnham, who is the front-runner to become the next Labour leader, Badenoch says questions remain over what his policies would be on defence and welfare.

"We need to bring back some common sense. If we keep pretending being PM is a popularity contest we will keep getting people who can win elections but cannot run the country," she adds.

Image source, Getty Images

Former Manchester City Council leader Richard Leese thinks Andy Burnham will have no problem making the jump from his mayoral duties to Downing Street.

"I think Andy will love the job if he gets it," Leese tells BBC Radio 4's Today programme. "He likes ideas, and part of liking ideas of course is to like having the odd argument about those as well."

As a result, Leese, who worked alongside Burnham as deputy mayor of Greater Manchester, suggests the UK would see a "far more relaxed prime minister" than in recent years should Burnham succeed Keir Starmer.

And Leese says he would expect Burnham to scale up his work in Manchester to national politics.

This means, he says, the public can expect Burnham's early priorities to be growth and devolution, with areas including apprenticeships and job support schemes devolved to a local level.

The Labour MP John Slinger says the party needs a full leadership contest - and a failure to do so would make it seem as if its MPs had "lost our minds".

Speaking to the World Tonight programme on BBC Radio 4, Slinger said: "For the leadership of a country that is the fifth-largest in the world, it is necessary.

"And I think the public out there would think we’d slightly lost our minds if we didn't go through a process where we subject people who aspire to the highest office in the land to completely normal scrutiny.

"We don’t just pass around the premiership of our great country to people. It says something about our politics and our wider society, that we have a very bizarre need for instant gratification.

"We buy things online, we send them back, we haven’t got any patience any more."

Image source, House of Commons

While Andy Burnham is the front-runner to become Labour's next leader, there is disagreement among Labour MPs about whether a leadership contest should take place.

Speaking to BBC Radio 4's Today programme, Labour MP Jo White says such a contest would be a "pointless charade".

"If we have a competition or a contest, this whole thing will extend until September," White says (see our earlier post with key dates here).

White wants to get a new leader "as quickly as possible so that we can get on with the job of governing".

Image source, House of Commons

However fellow Labour MP, Nadia Whittome, feels "there needs to be a contest".

Whittome says how to deal with the country's problems can't be answered "without candidates setting out their stall transparently, and being scrutinised by members and by unions".

She says she believes the party and government "will be stronger for having been through that process", whoever the leader is.

Cabinet Office Minister Nick Thomas-Symonds is calling for an "orderly transition" as he backs Andy Burnham to be the next leader.

Thomas-Symonds posed with other MPs for a picture with Burnham in Parliament on Monday, and says the party needs "someone with a track record of delivery and delivering change" and also "somebody who is best placed to beat Reform".

Burnham secured 55% of the vote share in the Makerfield by-election, comfortably beating Reform candidate Rob Kenyon.

While he says it's "not an unreasonable ambition" for other colleagues to challenge as leader, Thomas-Symonds stresses the party needs to be "facing outward" to the country.

"An orderly transition is what I'll be supporting."

Labour peer Baroness Margaret Hodge says she'd "rather get on quickly" with a new leadership team in place - instead of spending the summer debating who is best placed to be the UK's next prime minister.

Andy Burnham could become the new prime minister by 16 or 17 July - unless a Labour MP decides to challenge him, and gets the backing of 81 MPs to enter the race.

"On balance I’d rather get on quickly," Hodge tells BBC Radio 4's Today programme - though she admits there is no "perfect or right answer" to the question of contest or coronation.

She explains: "We've got to get on with delivering, we're in government," and adds that the country doesn't want the Labour Party to "spend time looking inwards".

Secondly, Hodge suggests, those mooted to challenge for the leadership - all men - are "basically in the same political stable".

So, she says, though it's "not an ideal answer", she'd rather see a new team put in place as soon as possible with Andy Burnham "making it clear what his plan for government will be".