One Year On: Labour’s First Year in Power – Promises, Progress, and Peril

July 4, 2025 The Gown Queen's University Belfast 454 Views 0 Comments 9 min read

By Hetty Harris

It has been a year since Keir Starmer walked into 10. Downing Street, leading Labour to its second-largest victory in modern history winning 411 Commons seats and securing a 63-seat majority.

With such a resounding mandate, expectations were sky-high. After years of economic turbulence from Brexit and the Covid-19 pandemic, Labour campaigned on a simple but bold promise: “Change.”

The Promise of Change

Their manifesto pledged to restore economic stability, cut NHS waiting lists, establish a new Border Security Command, and rebuild trust in politics. Starmer vowed to offer “serious government” after what many saw as years of Conservative chaos.

But one year on, the mood in the country is more cautious than celebratory. Recent polls show a drop in public enthusiasm, with some voters shifting support to the Greens or Reform UK. The question many are asking is: Has anything really changed?

What’s Actually Happened?

Economic Stability… But For Whom?

Labour’s first year in power has been marked by a commitment to economic stability, fiscal responsibility, and a pro-business environment. Chancellor Rachel Reeves introduced a “fiscal lock,” ensuring that national debt would fall as a share of GDP. This approach involved avoiding significant tax cuts or dramatic public spending increases, even under pressure from unions and local authorities.

In practice, Labour’s first year has been characterized as one of “economic repair” rather than transformation. Targeted funds have been allocated to the NHS, school repairs, and green technology pilots. However, critics argue these measures fall short of the scale many voters expected. Simultaneously, the government has committed to increasing defence spending by 5% amid rising geopolitical tensions, adding to budgetary pressures.

Labour’s approach has helped stabilize business confidence after years of uncertainty. UK bond yields and investor trust have steadied, and major business groups such as the Confederation of British Industry have welcomed the government’s predictability. Inflation has fallen back to around 3.4% in May 2025, easing some cost pressures. However, real wages are only just beginning to recover, and for many households, disposable income remains tight fueling doubts about whether economic stability has translated into tangible relief.

Some Labour voters have expressed frustration with what they see as a cautious, risk-averse government focused more on managing crisis than leading change. One commentator noted that Keir Starmer’s Labour “lacks the political spine” needed to deliver bold reforms. This perceived cautiousness may partly explain why some traditional Labour supporters have shifted allegiance to other parties, including the Greens or Reform UK.

Though the UK economy is calmer than before, questions remain over whether it is fairer or easier for everyday people. Labour has largely delivered on its promise of stability, but expectations for swift and significant improvements in living standards have yet to materialize.

NHS & Welfare: Navigating Funding, Reform, and Voter Disillusionment

Labour’s first year in government has been marked by a clear priority: stabilizing the NHS and managing welfare reform amid an inherited crisis. The government’s pledge of around £29 billion in additional NHS funding reflects an urgent need to tackle record waiting times and overstretched services. Yet, despite this significant injection, the daily reality remains grim for many patients and staff. Waiting times continue to exceed pre-pandemic targets, and staffing shortages rooted in long-term recruitment and retention problems still hamper service delivery.

Experts, including those from The King’s Fund, argue that while this funding boost is necessary, it does not replace the need for deep, structural reforms. Simply throwing money at the problem, without addressing managerial inefficiencies and workforce challenges, risks
leaving the NHS trapped in a cycle of short-term fixes rather than long-term transformation.

On welfare, the government’s approach has been more visibly reactive. Plans to tighten Personal Independence Payment (PIP) eligibility led to public outcry, forcing Labour to soften its stance for existing recipients. However, new claimants face tougher rules, signalling a
politically cautious move designed to appeal to voters demanding a ‘tougher’ line on welfare. This shift has alienated many of Labour’s traditional supporters, who fear the party is straying from its historic commitment to protecting the vulnerable.

Here lies the central dilemma for Labour: how to balance a political strategy aimed at winning over hardline voters while not losing the trust of its core base? Polling data from YouGov reveals growing unease among Labour voters, many of whom feel unheard and sidelined, especially on welfare and public services. This sense of disillusionment risks pushing them towards other parties promising clearer solutions.

The key questions become unavoidable:

Can Labour transform the NHS beyond temporary funding boosts and finally address
deep-rooted staffing and management problems?
Are policy reversals, like on PIP, signs of pragmatic adjustment or evidence of
inadequate planning?
What can realistically be achieved within a single year, especially given the magnitude
of the problems inherited?
Most crucially, how can Labour maintain support among voters who feel their needs
and concerns are being sacrificed in a bid to win over new constituencies?

Labour’s cautious, sometimes reactionary stance highlights the difficult tightrope it walks: the need to satisfy a broad and often conflicting coalition of voters while trying to implement meaningful change in deeply troubled public services.

In the end, Labour’s first year is a story of balancing acts between urgent investment and longterm reform, between political pragmatism and core values, and between immediate public anger and the patience required for structural transformation. Whether this balancing act holds or leads to further voter alienation remains the question as the next election looms.

Immigration: Reacting to Fear, Managing Fallout

Immigration wasn’t a headline promise in Labour’s 2024 manifesto. Their commitment to create a new Border Security Command showed some focus on control, but immigration wasn’t centre stage like in Conservative campaigns. Yet over the past year, immigration has become a lightning rod issue, driven largely by heated rhetoric from parties like Reform UK, who stoke fears about British identity, culture, and “being replaced” claims experts widely call fearmongering and divisive.

So what’s the reality? The UK’s net migration stood at approximately 504,000 in 2023 one of the highest since records began. That represents about 0.7% of the UK population. This level is broadly comparable to or even lower than some European countries. For example, Germany saw net migration of 1.1 million in 2022, about 1.3% of its population, while France’s net migration is roughly 0.9%. These figures challenge alarmist narratives that the UK is overwhelmed or unique in its intake.

Labour has clearly felt the political pressure. Although the party initially promised “tough but fair” border control through the creation of a Border Security Command, its immigration policies have been cautious and reactive. The new Border Security Command coordinates
across agencies to manage illegal crossings, particularly Channel small boat arrivals, which increased by over 50% in 2024. Labour tightened asylum rules for new claimants but softened measures for existing recipients following public backlash.

This approach seems driven less by a coherent immigration strategy and more as a reaction to Reform UK’s rhetoric, aiming to regain voters anxious about immigration. However, this risks alienating Labour’s traditional supporters, who typically prefer more progressive policies. Polling by YouGov (2025) suggests that immigration concerns have contributed to some Labour voters shifting to the Greens, who advocate more open immigration, and to Reform UK, who capitalise on hardline messages.

Labour’s immigration stance thus highlights a difficult political balancing act: trying to hold together a diverse coalition with conflicting views. Reacting to right-wing fears may help attract some swing voters but risks fracturing core support. Immigration has become a political tightrope Labour has struggled to navigate so far.

Foreign Policy: Navigating Post-Brexit Realities and Global Pressures

Labour’s foreign policy has indeed prioritized pragmatism and stability, reflecting the realities of a post-Brexit UK navigating a
complex international landscape. Steps like easing border frictions with the EU and advancing a UK-US trade deal demonstrate a
cautious attempt to restore economic ties and maintain the UK’s global influence. However, critics argue that this approach is too cautious, lacking bold vision or leadership. Some see Labour as overly conciliatory to Brussels, risking alienation of Brexit supporters who expect firmer stances on sovereignty.

The UK-US trade deal, while a diplomatic milestone, has also sparked controversy. Critics claim it compromises UK standards, especially in agriculture, and fails to resolve key issues like steel tariffs, potentially harming British industries. Moreover, Starmer’s close engagement with an administration led by Donald Trump a figure associated with far-right rhetoric has raised concerns about the UK’s alignment with questionable democratic values, sparking unease among some voters.

This cautious foreign policy mirrors Labour’s domestic pragmatism but contributes to perceptions of a government focused on managing crises rather than leading transformative change. As a result, many traditional Labour voters feel their core concerns are sidelined, leading to a drift towards parties like the Greens and Reform UK who promise clearer alternatives. In short, while Labour’s foreign policy choices aim to stabilize the UK’s standing, critics argue they fall short of inspiring confidence or addressing the deeper anxieties driving voter dissatisfaction.

Labour’s first year in government has been a study in cautious pragmatism focusing on stabilizing an economy and public services battered by years of crises while navigating the turbulent waters of domestic politics and international relations. While this approach has
brought some economic calm and diplomatic progress, it has also exposed Labour to criticism for lacking bold vision and for alienating parts of its traditional base. The party now faces the critical challenge of translating stability into tangible improvements in living standards and public trust, all while maintaining a fragile coalition of diverse voters. As the next election approaches, Labour’s ability to balance pragmatism with inspiring leadership will be decisive in determining whether it can regain the enthusiasm of its supporters or continue to lose ground to rival parties promising clearer alternatives.

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