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British equities were little changed on Tuesday, with the FTSE 100 down 0.04% at closing, as political uncertainty surrounding Prime Minister Keir Starmer and fresh signs of weakness in the retail sector weighed on sentiment.
Four ministers have resigned from the government, adding to concerns over instability within the Labour administration and fueling speculation about Starmer’s leadership.
“A growing rebellion against UK Prime Minister Keir Starmer staying on as Prime Minister could force him to resign and generate significant policy uncertainty. A ballot of grassroots Labour party members would decide his replacement, risking a leftward pivot in policy and a lesser commitment to fiscal consolidation. This would likely put downward pressure on UK asset prices in the near term,” Berenberg Senior UK Economist Andrew Wishart said.
Across the UK’s retail sector, sales dropped 3.4% year over year on a like-for-like basis in April 2026, against the 3.1% rise in the previous month, according to data from the British Retail Consortium. The reading, which missed market expectations of a 0.8% increase, marked the first fall in retail activity since November 2024.
“April’s sales fall was largely driven by the Easter shift, with food hit hardest. But weak consumer confidence also played a role as fears about the Middle East conflict driving up living costs led shoppers to rein in. Big-ticket purchases fell, with the recent recovery in furniture losing steam, and uncertainty around summer holidays hitting discretionary spend. With the World Cup coming, retailers hope it will provide a lift, and early signs show demand for TVs and sound systems picking up,” BRC Senior Analyst Ian Bendelow said.
In corporate news, telecommunications company Vodafone (VOD.L) said its loss attributable to owners of the parent for the 12 months ended March 31 shrank to 397 million euros from 4.17 billion euros year over year amid an increase in revenue. Vodafone was down 7.02%, becoming the blue-chip index’s worst performer.
On the upside, Intertek Group (ITRK.L) was the top stock, rising 6.43%, after receiving a fourth and final proposal from Swedish private equity giant EQT of 60 pounds sterling per share in cash plus Intertek’s planned 2025 final dividend of up to 1.077 pounds per share. The British assurance, testing, and certification company’s board rejected EQT’s previous offer of 58 pounds per share in cash.
“ITRK’s shares have not been above GBP60 since Q221 and have materially lagged key benchmarks and peers until recently,” RBC Capital Markets said. “We see EQT’s bid as a fair balance between compensating ITRK shareholders for future upside potential (whilst there is no guarantee that the current Board can deliver seamless upside), and creating a cushion of safety for EQT as it likely plans to prepare ITRK for the next stage on it strategic journey.”