It was a moment that will be ingrained in British memory. Finance minister Rachel Reeves appeared in front of the entire nation on Wednesday, almost precisely one year after the achieved a substantial parliamentary majority. This incident occurred as the government faced scrutiny regarding for millions of disabled individuals, following a rebellion by Members of Parliament that has sparked questions about the longevity of Reeves or even in their roles.
The current state reveals a paradox that has plagued the Labour Party since assuming power. Its approach is consistently conventional and cautious, characterized by a commitment to “fiscal restraint” and the preservation of existing institutions. However, in a country requiring innovation rather than stagnation, this style of governance tends to create continuous crises—which have, in turn, led the party to make that have eroded its credibility.
It would be an exaggeration to suggest that Labour has fallen short of public expectations. The party largely owed its election victory on July 4, 2024, to widespread discontent with the Conservatives, who had governed for 14 years marked by austerity measures, a tumultuous Brexit, , and a notorious market downturn when one of the party’s Prime Ministers, Liz Truss, for the superrich. (The Daily Star initiated a live stream to determine whether Truss or a head of lettuce would have a longer shelf life; the .)
Labour assumed office with 64% of parliamentary seats despite securing a modest 34% of the vote. Voter turnout reached a historical low, prompting some to label Starmer’s triumph a or a . The party had not sought to differentiate itself from the Conservatives ideologically: both agreed on the necessity to control state spending, the paramount importance of the special relationship with Washington, and the need to reduce migration. The primary distinction was the matter of effective governance, with Sir Keir—a respected lawyer who previously led the country’s Crown Prosecution Service—promising to be a more competent administrator.
However, the pledge of fiscal discipline has . Reeves has consistently ruled out tax increases, leading the government into ongoing budgetary crises. Its solution has been to maintain severe measures such as the . It has eliminated subsidies that help elderly citizens stay warm during winter, igniting such public outrage that Starmer . Its attempt to compel ill and disabled individuals into employment by reducing benefits is merely the latest backlash stemming from these self-imposed spending restrictions.
The Labour government’s proposition has consistently been that it can revitalize economic growth to better fund the state. It has pursued this by demonstrating its “credibility” to financial markets and deregulating key sectors. Financiers are being encouraged to engage in more and asset management firms are being incentivized to acquire more of Britain’s deteriorating infrastructure in ways that will primarily benefit affluent investors.
This represents a trickle-down economic strategy for the 2020s, founded on granting large corporations all their desires in the hope that the wider population may eventually share in the prosperity. The former head of Amazon U.K. has been responsible for regulating private monopolies. The former CEO of Microsoft U.K. now chairs the government’s industrial strategy council. Executives from BlackRock have received exceptional access to key ministers. Yet, GDP growth remains and public services are still under immense pressure. Descriptions of Britain as a “” are becoming increasingly common.
Naturally, Britons are seeking an alternative. One potential option is a launched by former Labour Party leader Jeremy Corbyn and others. However, for many today, the closest available choice is the smiling, cigar-smoking demagogue Nigel Farage, leader of the far-right Reform party, whose uninspired promise to “Make Britain Great Again” and has gained increasing traction as the Labour government falters. Although Reform secured only five of 650 seats in the 2024 election, it in May. Its latest put its support at 34%, and there is growing speculation that Farage could . Its rise has coincided with a across England and Northern Ireland, during which racists assaulted asylum seekers and set fire to their accommodation.
Instead of developing a cohesive strategy to counter Farage, Starmer has frequently wavered. Initially, his government of migrants being deported and pledged to prevent Britain from becoming an “island of strangers”—echoing the language of the in his infamous “Rivers of Blood” speech. Starmer , asserting that neither he nor his speechwriters were aware of its similarity to Powell’s remarks.
This served as yet another instance of Labour’s tendency for indecision and self-sabotage: failing to attract Reform voters while alienating many of its own supporters. Senior party figures are now expressing that Starmer could be ousted within months. The conclusion is that, in contemporary Britain, the reluctance to pursue meaningful change leads to persistent turbulence and instability. Unless Starmer discovers a way to avert the latter, his political survival cannot be guaranteed.