Anas Sarwar has dramatically resigned as Scottish Labour leader to become Minister of State for Trade in Andy Burnham’s new administration – a move that has plunged the party into a leadership contest just months after its worst Holyrood result in history.
The surprise announcement, which came on Wednesday, saw Sarwar appointed to the trade post after being ennobled. It ended months of speculation about his future, though most insiders had expected an autumn exit rather than an immediate departure for a role in English government.
“Anas Sarwar quits as Scottish Labour leader to become trade minister for Andy Burnham”
Sarwar took over as Scottish Labour leader in 2021 with a clear ambition: to become first minister. For a time, that goal seemed within reach. The SNP was mired in scandal and performing poorly, and Labour appeared to be the only realistic alternative. He helped deliver a thumping UK majority for Keir Starmer in 2024, and the stars seemed aligned for a Scottish revival.
But it was not to be. Starmer’s unpopularity and incompetence drained support away dramatically. Months out from this year’s Holyrood election, it became clear the SNP would continue as the largest party, extending its quarter-century in office. Despite Sarwar’s energetic campaigning and positive public statements, his fate was sealed. In May, Scottish Labour returned only 17 MSPs – the party’s worst result since devolution.
His swift departure has triggered anger among some in the party over the timing, plunging Labour into a prolonged and potentially divisive leadership contest when it might otherwise have benefited from the “Burnham bounce” in the polls. There is also concern the contest will expose splits in the movement and be defined, damagingly, as left versus right.
One senior Labour source defended the move, describing the trade minister role as “tailor made” for Sarwar, calling him “a salesman and a dealmaker”. Some see the appointment as a reward for Sarwar’s demand during the election campaign that Starmer should step down – a debt repaid by a grateful Burnham.
Attention now turns to the succession. Katy Clark, a left-wing MSP, is actively considering a bid to replace Sarwar. The contest, which is expected to unfold in the coming weeks, will test the party’s direction north of the border as it tries to rebuild from its historic low.