Scottish Labour leader Anas Sarwar has confirmed he is stepping down to become Minister of State for Trade in Andy Burnham’s government.

He will leave the Scottish Parliament and his leader role, and he will be granted a peerage so he can take up a seat in the House of Lords.

Sarwar, who has led the Scottish Labour Party since 2021, said he would work with his successor to serve people in Scotland.

In a statement on social media, he said he was “delighted” to join the UK government and it had been “an honour” to serve people in Glasgow, where he was an MSP, and across Scotland.

He said he was “disappointed and sorry” for Scottish Labour’s poor performance in the Scottish Parliament elections in May, adding: “I take my fair share of responsibility for that.”

Scottish Labour won just 17 seats out of 129, a record low for the party.

“I am delighted and honoured to have been asked by the prime minister to serve every part of the United Kingdom as the Minister of State for Trade,” Sarwar wrote on X.

“Throughout my life, I have only ever been motivated by public service, the opportunity to serve our country is all I ever asked. That’s why this is an opportunity I humbly accept.”

He added: “The challenges facing the United Kingdom now could not be greater or the risks more stark.

“The rise of an emboldened new right must concentrate minds. This is a fight for the heart and soul of our nation. That’s why Andy Burnham and this Labour government must succeed.”

Dame Jackie Baillie becomes acting leader of Scottish Labour with Sarwar’s exit.

She thanked Sarwar for “his leadership and friendship”, and said he led the party with “integrity and a vision to build a fairer and more equal Scotland”.

She added: “The Scottish Executive Committee will meet to agree a timetable for the election of the next leader of the Scottish Labour Party.

“Further details of the leadership election will be communicated in due course.”

There will not be a by-election for Sarwar’s Holyrood seat as he was elected via the regional list.

Monica Lennon, who had been in the Scottish Parliament for a decade but was not re-elected in May, is the next name on the Glasgow list.

Sarwar publicly called for Sir Keir Starmer to resign in February, provoking a political near-death experience for the then prime minister.

He was at the event in London last Friday when Burnham became the new Labour Party leader.

As of last year, new rules prevent politicians from sitting at both Westminster and Holyrood at the same time.

Following the Holyrood election defeat Sarwar promised to stay on as leader in Scotland.

In May, as reported by The Herald, external, when asked if he would ever take up a seat in the House of Lords, Sarwar said: “No. I’m focused on being first minister of this great country.”

He added: “My only commitment, my only focus, is serving my constituents in Glasgow and serving the great people of this country, if I get the honour of being first minister.”

After Sir Keir’s resignation in June, when asked if he planned to serve as party leader for the full five-year Holyrood term he said: “That is my intention.

“I’m hungry for the fight ahead and I want to play my full part in making sure this country never ends up in the hands of Nigel Farage and Reform.”

Earlier, Scotland’s First Minister and SNP leader John Swinney wished Sarwar well in his “exciting new job” but he was critical of Burnham.

Speaking to BBC Radio Scotland’s Breakfast programme, Swinney said: “It is a terrible look for Andy Burnham because the new PM has made a great play of essentially improving people’s perceptions of politics and politicians.

“And to make one of his first decisions a decision to take the Labour leader in Scotland, who has just led the Labour Party to their worst result in the Scottish Parliament elections in the history of the Scottish parliament elections, and give him a job for life in the House of Lords and a job in the UK government is in my view a very, very strange way of trying to rebuild the confidence of the public in politics.”