The Economist: UK Labour government faces mounting crises amid Falling Polls

Britain’s Labour government is marking its first anniversary under a cloud of political and economic turmoil. Once hailed as a centrist alternative to populist politics, Prime Minister Keir Starmer’s administration is now trailing behind Nigel Farage’s right-wing reform UK in polls and facing sharp criticism from within its own ranks.

As The Economist writes in its analysis, labour came to power promising sweeping reform: to revive the economy, rebuild public services, and restore public trust. But twelve months in, many of those pledges remain unfulfilled. Hospital waiting lists persist, housing plans have stalled, and the government’s vow to stop small boat migration remains unmet, Caliber.Az cites the article. 

The situation escalated further this week when Starmer suffered a rebellion from his own MPs. On July 1, they gutted a key bill to cut sickness and disability benefits—a measure designed to save £5.5 billion annually by 2030. The rebellion has not only undermined Labour’s attempt at welfare reform but also sparked concern among investors. Bond yields spiked the following day, and Chancellor Rachel Reeves was seen weeping in Parliament. Her political future is now uncertain.

The setback illustrates deeper issues within the party. Labour’s reform agenda has been criticized as timid and fragmented. Analysts say the government has wasted political capital on piecemeal changes that lack the scale or speed to tackle the UK’s entrenched problems—chiefly economic stagnation, weak growth, and mounting debt. Britain is currently experiencing its longest economic slump since the 1930s, with debt servicing costs now the highest since 1987.

Public trust in government has also plummeted. Recent surveys show trust levels at a 40-year low. On election day last year, Starmer called trust “the battle that defines our age,” but critics say he has failed to make the case for his leadership beyond gaining office.

Starmer’s cautious approach is also drawing scrutiny. His reluctance to champion bold reforms, such as overhauling the welfare system or planning laws, has left many voters disillusioned. His earlier strategy—downplaying policy specifics to avoid controversy during the campaign—has come back to haunt him in government.

Labour’s internal fractures are widening as well. MPs have twice rejected cost-cutting measures, first over heating subsidies and now over welfare. Many within the party are pushing to relax fiscal rules and increase borrowing, echoing policies that led to the downfall of former Prime Minister Liz Truss in 2022.

Despite the setbacks, analysts caution against writing off Starmer entirely. Even former Prime Minister Tony Blair faced early backbench revolts. There is still an opportunity for Labour to deliver on reforms—particularly in welfare, housing, and taxation—if the party is willing to confront uncomfortable economic realities.

However, confidence is fading fast. Investor trust in the government appears shaken, and Reeves’s authority has been severely damaged. With a weakened chancellor and a rebellious parliamentary party, Starmer may find it increasingly difficult to govern effectively.

Unless Labour changes course and recommits to substantive reform, critics warn it risks becoming another centrist party overwhelmed by populist pressure. Nigel Farage and the Reform UK party are already capitalizing on public frustration, threatening to take the political momentum Labour once claimed.

As Labour’s support falters, the prospect of Farage riding a wave of discontent into power is becoming increasingly plausible—sending a warning to centrists across Europe and America.

By Sabina Mammadli