From Slogans to Struggles: The Reality of Year One Under Labour

✨ Key Achievements

1. Economic & Public Service Investment

  • Chancellor Rachel Reeves launched “securonomics”: a major capital investment programme (~£113 bn) focused on infrastructure, clean energy, AI, and public services, the biggest tax rise since 1993 to pay for it (labourfuture.co.uk).
  • The NHS received a £29 bn boost, resulting in a ~5 % reduction in waiting lists (Financial Times).
  • Minimum wage rose to £12.21/hr, a 6.7 % increase (Asian Voice).

2. Housing & Planning Reform

  • Ambitious but under-delivering 5-year target to build 1.5 million homes; however, planning approvals dropped to a 13‑year low (Financial Times).
  • The National Planning Policy Framework and Planning Bill introduced greenbelt “grey belt” development and reinstated mandatory housing targets (Planning, Building & Construction Today).

3. Immigration & Border Policies

  • Introduced a bilateral “one in, one out” scheme with France to manage small boats and launch legal asylum pathways (Financial Times).
  • Deportations increased, ECHR reforms advanced to speed up removals, while Channel crossings continued to rise (~45 %) (The Guardian).

4. Welfare and Workers’ Rights

  • Employment Rights Bill introduced: expanded protections against unfair dismissal, strengthened rights from day one, and addressed zero-hours contracts (The Guardian).
  • Welfare reforms included cuts to the health component of Universal Credit and stricter PIP eligibility for new claimants; this triggered a backbench rebellion (47–50 MPs) (The Guardian).

5. Global & Strategic Moves

  • Strengthened UK–US trade relations, backed Ukraine, and secured a France immigration accord alongside broader defence agreements .
  • Launched Great British Energy Act and National Wealth Fund to drive clean energy and heavy‑industry decarbonisation (Asian Voice).

🚩 Major Criticisms & Challenges

Economic Performance & Fiscal Tension

  • Growth has been sluggish: early 2025 saw near-zero GDP growth, with OBR halving its forecast to ~1 % (The Times).
  • A fiscal “black hole” (~£22 bn) inherited from Conservatives forced tax/NI hikes and spending cuts (ii.co.uk).
  • Employer NI rises and VAT on private schools sparked backlash; “fiscal drag” froze thresholds, inadvertently raising taxes (The Times).

Messaging & Leadership

  • Labour’s brand of cautious, managerial politics has led critics to say it lacks vision and boldness (labourfuture.co.uk).
  • A string of PR missteps over fuel payments, gifts scandal, and civil service appointments have dented internal unity .

Voter Sentiment

  • Traditional Labour supporters feel alienated: many cite betrayal on welfare/housing, claiming the party seems more Conservative-lite (The Guardian).
  • Approval ratings are low: 47–72 % view the government as ineffective or chaotic, 72 % say it’s as chaotic as its predecessor (The Times).
  • Pessimism abounds: YouGov found 59 % disapproved of Labour at 100 days, 39 % think the country is worse off (YouGov).

🔍 Balanced Perspective

  • What’s working: Rebuilding public institutions (NHS, housing and worker protections), investing in green energy and infrastructure, diplomatic gains.
  • What needs fixing: A clear “narrative” tying reforms together, stronger leadership messaging, addressing economic stagnation head-on, and retaining core supporters.

Think tanks like the Institute for Government argue that the government must combine coherent vision with bold policy and polish communication (Institute for Government).


📝 Summary

AreaPositivesConcerns
EconomyInvestment-led approach, stable marketsGrowth weak, inflation and tax drag biting
Public ServicesNHS funding, waiting list reductionsWorkforce shortages remain
HousingPlanning reformsDeliverability faltering, approvals at 13-year low
Welfare/BenefitsEmployment rights protectionsBenefit cuts sparked internal rebellion
ImmigrationPragmatic policies, France dealCrossings still rising, rights concerns
PoliticsDiplomatic gains, defence strategyVoter disillusionment, messaging lacks clarity

✅ Verdict:

Labour’s first year featured solid policy groundwork and public-service investment, but was overshadowed by economic headwinds, messaging missteps, rebel backlash, and voter unease. The critical next phase: deliver tangible growth and reconnect with core supporters while refining public narrative and internal cohesion.