Stop-start would probably be the best way to summarise Labour’s first year in power.
The past 12 months have been defined by a huge amount of geopolitical turbulence, which has largely been out of the control of Keir Starmer and his party.
Trump’s return to the White House and all the chaos that has brought with it, coupled with conflict in Eastern Europe and the Middle East, have created a very difficult backdrop for Labour to implement its domestic policies, and it feels like progress has been limited.
Positively, the economic landscape has improved slightly. Inflation, while sticky, has remained below 3% for much of the past year.
BASE RATE FALLS
The base rate, meanwhile, has dropped from 5.25% to 4.25% since Labour came to power. But this isn’t enough to mask the issues surrounding the government.
After 14 years of Tory rule, it was always going to take time for Labour to bring about the changes it campaigned for.
But patience will run out, and this second year is going to be very important; after years of economic hardship and turmoil stemming from the pandemic, the UK economy needs to turn a corner, and critical issues, ranging from housebuilding to GDP growth, must be addressed in the next 12 months.
The results might take years to shine through, but the challenge right now is for Labour to show that its policies and fiscal commitments are tackling the problems that matter.
GET BRITAIN BUILDING
The Spending Review underlined that it is intent on delivering on its promise to “get Britain building”, and planning reforms will likely be key in supporting the £39 billion investment Labour is making.
As a major social issue, boosting the country’s housing stock ought to be a priority over the remaining four years of this parliament.
Improving the supply of housing, along with the savvy marshalling of the economy to help bring the base rate down and alleviate the cost of borrowing, would provide a huge shot in the arm for the property market, which in turn can boost the performance of the wider economy.
With a tricky first year out of the way, it’s time to see Labour make larger strides in achieving these things.
