Keir Starmer and Andy Burnham have had a meeting - their first since Burnham won the Makerfield by-election last week
It comes as the PM's spokesman says Burnham has been granted access to civil service briefings as a Labour leadership contender
On Monday, Starmer announced his resignation, saying he would stay in post until his successor is chosen
No 10 says there'll be "no new major policy or spending commitments" until a new PM is appointed
However, ministers are planning to press ahead with publishing defence spending plans - our correspondent says this could draw criticism from Starmer's potential successors
Daniela Relph
Senior royal correspondent, reporting from The Mall
As the prime minister remains in post for now, his regular audience with the King will continue as usual with the next one scheduled for later this week.
As we reported earlier, Keir Starmer spoke to the King this morning to tell him he was resigning. They spoke over the phone. The King was at Highgrove - his estate in Gloucestershire.
Deputy PM David Lammy has just briefly spoken to BBC News outside No 10. He says today we've seen "the decency, the goodness of the man" in Starmer's resignation.
"He is a good man, principled, decent. I think we’ve seen in his resignation this morning the character of the man putting the country first," he adds.
Lammy says Starmer's legacy as Labour leader includes "rooting out antisemitism" in the party and lifting it from its election defeat in 2019 to its landslide win in 2024.
As PM, says Lammy, Starmer has stabilised the economy, restored the UK's reputation on the international stage, stood by Ukraine and seen NHS waiting lists fall.
He adds that he has been "very proud" to serve alongside him - and will also be loyal to the next Labour leader.
Image source, Getty ImagesChancellor Rachel Reeves has praised Starmer following his resignation announcement.
She says Starmer took Labour from its "worst defeat in modern history" to a "landslide majority just four years later".
"We have achieved a lot together to be proud of, and there is more to do. I am grateful for Keir's leadership and the work he has done to build a stronger, more secure Britain," she says.
Image source, PA MediaHere is the full statement from Wes Streeting, in which he says he will back Andy Burnham to become Labour leader:
"Keir Starmer led us to a general election victory that no one thought possible. He kept us out of the war in Iran and has delivered real progress as prime minister at home. He has made the right decision to stand down as the leader of the Labour Party that he saved.
"After a devastating set of election results in May, the Makerfield by-election has proven that Labour can still win if we have the courage to change. It was a victory for unity and hope over division and hatred.
"It was also Andy Burnham’s victory. Andy has shown what Labour can be when we are inclusive, united, and in touch with the lives of the people this Party was founded to represent.
"I left the government because we were losing the fight to nationalists in every corner of the country. I have spent the weeks since speaking to our former councillors, activists and voters in place we lost - to listen and learn from them.
"I've also been setting out ideas to change our country: a plan for Britain to grow again and grow together, with a progressive capitalism focused on wealth creation as much as wealth distribution; to lead the world in the fourth industrial revolution and protect people from its risks; to modernise our public services; to give Britain energy security; to build stronger alliances with democracies around the world and a new special relationship with Europe; and to change the culture of our party so that it is more inclusive and open to ideas.
"Having spoken at length with Andy in recent days, I'm convinced that there is a place for those ideas under his leadership; that he is committed to building an inclusive party that draws on the best of our political traditions; and that he can win the fight of our lives against the forces of nationalism.
"We could spend the summer exaggerating small differences, or we can roll up our sleeves and help him to deliver the change our party and our country needs. That is the choice that I am making and I hope that everyone else will back Andy, too.
"We were elected change our country, to show that politics can be a force for good, and to spread opportunity for everyone. With Andy, we still can."
Former health secretary Wes Streeting has announced he will back Andy Burnham for Labour leader.
Streeting resigned from government in the wake of the May's election results, and said that he has lost confidence in Starmer's leadership.
Andy Burnham has just reacted to Keir Starmer's resignation, and confirms that he will try to replace him as PM. Here's what he has written on social media.
"Keir has given huge service to our country and I want to thank him for his leadership and dedication during such a challenging period.
"His decision marks the beginning of a transition and it is important that this process is conducted in an orderly and responsible way. I will put myself forward as part of this process.
"The country expects stability, seriousness and a continued focus on the issues that matter most and that is what it will get. As we move forward, our priority must be to work together to get the country back to where we all want it to be.
"People want to see progress on economic growth, cost of living, public services, housing and opportunities for the next generation. Political change should never distract from the responsibility to improve people's lives.
"The Labour movement has always been at its strongest when it looks forward with confidence and purpose.
"This is what we will do from here and we will make sure this transition is a positive process of renewal for our party and our country."
Simon Jack
Business editor
Currency is often the most sensitive to political upheaval – and you have seen the pound fall a bit over the last few days from 1.34 to 1.31. This is not huge and driven as much by dollar strength rather as pound weakness.
Government borrowing costs have also crept up very slightly over the last week but are still well below the levels we saw last month.
Bond markets remember the comments from Andy Burnham in January when he said that the government should not be “in hoc" to the bond markets – but he has since clarified that he would stick to Rachel Reeves fiscal rules of funding day to spending from tax receipts rather than extra borrowing.
Markets are still trying to figure out what Burnhamism or Manchesterism might mean on a national scale.
Does it mean a productive use of devolution for more regionally led growth boosting programmes by pragmatic intervention by national and local authorities?Or does it inevitably mean higher govt spending funded by higher borrowing, higher taxation or both?
Rowan Bridge
North of England reporter
Image source, ReutersBurnham was pictured outside his Warrington home on Monday
I’m told Andy Burnham thanked staff "from the bottom of his heart” as he appeared at a staff meeting this morning at the Greater Manchester Combined Authority.
He became emotional as he told the assembled crowd that the job of Metro Mayor had been the “privilege of his life".
He was given a Manchester-themed armchair as a leaving present from his mayor job. I’m told it’s embroidered with bees, the symbol of Manchester, and the Manchester skyline. It also has the phrase “we do things differently here” on it.
He has now left the GMCA offices ahead of his expected swearing in as an MP later today.
Here are some of your comments we've received on Starmer's resignation.
Lee says: "I get fed up that they keep saying that the prime minister is at fault. I blame the whole of the cabinet for bad judgement and wrong policy decisions."
Meanwhile Stephen in Chelmsford tells us he's a Conservative voter, but thinks what has happened to Keir Starmer is "morally wrong".
"The trouble with Starmer is he has no charisma," he explains. "He cannot connect with the public like the others, but I don't think he's a bad prime minister."
Elaine in Rhyl says: "If Starmer goes our country needs a general election, we should have our say."
Image source, PA MediaGreen Party leader Zack Polanski says Keir Starmer "lost the confidence of the country" after he failed to challenge the establishment's "power and wealth".
Polanski says this has left "the vast majority in a cost of living crisis" as he reacts to Starmer's resignation on social media.
On Starmer's potential successor Andy Burnham, Polanski says he "must be bold or he will be bust".
"The early indications are not encouraging and suggest more of the same with better communication skills," he says.
Image source, Getty ImagesKeir Starmer is a "man of great integrity who has devoted his career to public service" says Sadiq Khan following Starmer's resignation announcement.
The mayor of London says he and Starmer have been friends and colleagues since they were both young lawyers more than three decades ago.
"He is only the fifth Labour leader to have won a general election," says Khan, adding that "Starmer has made a huge contribution to the Labour Party and our country, and I want to the thank him".
He adds that the next PM must hold firm to the "progressive values our party was established to promote".
Image source, PA MediaReform Leader Nigel Farage is calling for a general election at the "soonest possible date".
In an essay shared on X, Farage calls Starmer "the most incompetent prime minister" the UK has had.
He claims the "political class" cannot continue to betray voters, reeling off the winter fuel payment u-turn, immigration levels and the shelved Chagos Islands deal as examples of the way Labour has shortchanged those who brought them to power.
Andy Burnham, he says, would see in a continuation of Starmer's policies if he becomes the new Labour leader.
Nick Eardley
Political correspondent
What now?
There is now some space for the Labour Party to discuss just that.
Starmer has announced nominations for his replacement will open in a fortnight.
Will there be a coronation? A growing number of Labour MPs think so. The overwhelming favourite is Andy Burnham - why would anyone stand against him?
Wes Streeting has previously said he’d stand. But interestingly, some of his allies have also acknowledged he might not. Could he be offered a big job by Burnham instead?
But the current timetable leaves open the possibility that someone else throws their hat in the ring.
Could someone from the centre right feel the need to trigger a contest?
All the money though is on Andy Burnham being prime minister soon.
Image source, EPA/ShutterstockKeir Starmer said he will ask the Labour Party's National Executive Committee that nominations for the party's new leader open on 9 July.
He said this will be completed "by the summer recess", which is a week later, on 16 July.
In the case of a contest, this will ensure a new leader is in place by the time Parliament returns from its summer break on 1 September, he said.
As we've been reporting, it's unclear if there will be a contest over the next Labour leader.
If, for instance, Andy Burnham were to run unchallenged when the contest opens on 9 July, he could become Labour leader after nominations close.
Until this is decided, Starmer will remain as prime minister.
Image source, Getty ImagesLiberal Democrat leader Ed Davey says the public is "sick" of constantly changing prime ministers, following the resignation announcement from Keir Starmer.
"The British people are sick of being let down by an endless merry-go-round of prime ministers while nothing really changes," Davey writes on X.
"This time must be different. It can’t just be about changing who’s in Number 10, it has to be about changing our broken politics so we can fix our country."
Jack Grey
Live reporter
Watch: Keir Starmer's resignation speech - in full
Keir Starmer says he will step down as Labour leader and prime minister after accepting that his party does not believe he is best placed the lead the country into the next general election.
Here are the key points from his resignation speech:
Daniela Relph
Senior royal correspondent
The prime minister spoke to the King this morning to tell him he was resigning.
They spoke over the phone.
The King was at Highgrove - his estate in Gloucestershire.
Starmer says after leaving the "biggest job in the country" he will spend more time on "the most important job".
"Being the best husband I can, to my fantastic wife Vic, who has been a rock by my side through good times and bad," he says, fighting back the emotion of the moment.
"And being the best dad that I can to my beautiful children, who are my pride and joy," he concludes.
He hugs his wife before heading back inside No 10.
Image source, ReutersStarmer embracing his wife Victoria on Downing Street
Keir Starmer says he will do everything he can to ensure an orderly handover of power, and will give his successor his full support.
They know, he continues, that they are inheriting a Britain that is stronger and fairer than two years ago.
Starmer then thanks his friends and colleagues who have been by his side for six years, as well as the No 10 staff and the "extraordinary civil service".
Image source, PA MediaStarmer says he spoke to the King this morning to inform him of his decision to resign.
He has asked the National Executive Committee of the Labour Party to set out a timetable with nominations opening for the leadership on 9 July, and completed by the summer recess.
This will mean a new leader is in place before parliament returns in September.
Until then he will remain in post as prime minister, he says.