Almost a year ago, Sir Keir Starrer announced that “the work of the change begins immediately”.
He was only a few hours after becoming a prime minister Nhs In order to repair the British economy to the appearance of house building – and asked people to assess his government for “actions, not according to words”.
After a turbulent first year in office, the Financial Times examines the previous record of the Labor government.
Divide economic growth
Labor came to power in July 2024 and promised to make growth his “Mission number one”. A year later, business optimism was steamed, and the economy has shrunk since 2023 in April, which places the prerequisites for the slowdown economists, which expect to follow the expansion recorded in the first quarter.
The government has undertaken to “do better” people, and an increase in real wages since mid -2023 has been helping household finances. However, dealing with wage and salary statements drops according to higher labor costs after the increase in the nationally living wage and the employer -national insurance contributions in April in April.
High credit costs and rental inflation continue to burden the budget finances. Productivity growth – essential for sustainable improvement in living standards – remains difficult to grasp. Companies have taken some heart of trading packages with the EU, India and the USA, but the mood remains suppressed and the investments are restricted by the initial focus of the government on the “black hole” in public finances and taxes after the election.
“Instead of driving the wave of optimism after the election, the Chancellor flattened it,” said Paul Dales, Chef Britann’s economy in the capital economy.
Build an NHS that is suitable for the future
The healthcare system received an annual increase of 29 billion GBP, while many other areas of daily expenditure in June in June had confronted Chancellor Rachel Reeves’ expenditure, with the critical improvement of the NHS services underlining for the Labor political project.
There are signs that this helps in office with almost 4.2 million additional election operations, appointments and tests in England in the first nine months. This contributed to reducing the waiting list to 7.39 million transfers in April, 5 percent below its record high in September 2023, but still far above the pre-Pandemic level.
Andrew Wishart, economist at Investmentbank Berenberg, said that the progress in clearing the backlog had come to “high budget costs”.
“An improvement in productivity, which may be made possible by investing in diagnostic devices, is necessary to continue improvement without being due to higher tax or loans,” he added.
Get Great Britain on the building again
Labor promised to “build again in Great Britain”, with relaxed planning rules and more funds for the residential building because it swore to build 1.5 million houses for over five years.
While a recovery in the building of the house will take time when it expands the country supply, the latest data is not encouraging because the approvals of planning applications in England are approved liked the lowest in 13 years.
In accordance with his commitments, Labor has also reformed the financial rules in order to support more public investments with over 100 billion GBP in additional investment expenses, to announce a 10-year infrastructure strategy, introduced GB energy to invest in renewable energies, and to build a national asset fund in order to promote private capital in priority sectors.
These guidelines have the potential to increase economic growth, explain experts. “Of course, the challenge remains financially,” remarked Sandra Horsfield, economist at the Financial Services Company Investec.
Fix public finances
In her budget in October Reeves vowed to restore “stability of our public finances”, but the reality was a number of U-turns in terms of welfare and unexpected budget consolidation in their spring declaration.
Analysts now see an increasing view of a new round of tax increases in autumn, since the increasing defense expenditure, weak economic growth and higher expenses for the winter fuel payments and social benefits burden public finances. Labor’s promise not to raise the levies for working people, leaves a small part of the tax basis, which must collect the invoice.
“Many things have to go right for the government in order not to break some manifest promises and still deliver all the” changes “they want,” said Horsfield.
Secure the boundaries of the UK
Labor has set up and strengthened a new border security authority Cooperation smuggle on people with France.
The returns have a seven year old, but small boats with a total of Almost 5,000 migrants June 27th ended in the monthPresent “clearly go in the wrong direction,” said Peter Walsh, Senior Researcher at the Migration Observatory of the University of Oxford. The legislation for the introduction of new enforcement powers leads through the House of Lords.
The government also promised to “end asylum hotels and to save the taxpayer billions of pounds”. However, the latest official figures for the number of migrants in hotels show that it is higher than at the time when the work on March 31, 2025 was 32,345 compared to 29.585 on June 30, 2024.
The government has also started to reform the immigration rules in order to contain the net) that has already started due to measures by the previous government. Official estimates indicate that Labor’s plans will reduce the number of arrivals in Great Britain around 100,000 a yearBut the effects on the net) are less clear.
Increase the public service standards
The improvement in public services was the focus of the Labor election manifest, with a number of obligations, to increase standards and to increase the attitude into schools and police work.
The Home Office has provided 200 million GBP for the provision of 13,000 more neighborhood policemen, but Th THE national chief of police said the chief of police The settlement for police work in the “falls far short” of what is necessary to make this promise.
The government has already ended VAT exemption for private schools, but it is too early to determine whether it will achieve more ambitious goals such as halving serious violent crimes and the warranty of 75 percent of five -year -olds for school.
Job offers in education and public administration have dropped from the spring of 2024, but the national examination office has raised questions about whether the commitment to the hiring of 6,500 experts, new teachers, goes far enough to tackle acute bottlenecks.
Jack Worth, senior economist at the National Foundation for Educational Research, said that the promise of the promise was a “considerable challenge”.
