Labour in Power: Starmer’s First Hundred Days 

A “Choppy” Introduction to Government 

Changes of government are rare in the UK. Sir Keir Starmer’s new Labour government came in after 14 years of Conservative rule. His victory was only the third change of a governing party since 1980. So, it’s no surprise that not everything has gone to plan. Starmer told a BBC podcast over the weekend that, despite his landslide majority, things had been “choppy.” It’s fair to say that events have not met the high expectations that were put upon the new government. While the Conservatives search for a new leader, they are still roughly neck and neck in the polls with Labour. With staff changes, communication failures and policy missteps, the new government still has some way to go to learn how to use the power of its incumbency. 

The Manifesto and Missions 

Labour’s manifesto and wider election campaign were criticized by many as being limited, and not taking advantage of the strong polling leads it sustained throughout the long run-up to polling day. Commentators suggested they could get a mandate to push through a more “radical” or “bold” agenda, perhaps proposing tax rises to fund public service reform or to align more closely with the EU on free movement or by joining the Customs Union.

Labour resisted this pressure. They held a very tight line on policies involving spending and promised no increases in the rates of VAT, Income Tax, or National Insurance “for working people.”

Their manifesto was tightly drawn around the “Missions for Government.” Sir Keir Starmer said these Missions were to address “long-term problems that need a long-term plan” with “no silver bullet” that “need lots of actors and agencies working to achieve them.” He said the outputs and “first steps” would be “ambitious but attainable goals, so we strive to go beyond the incremental and make lasting change for the better.” 

Mission One: Growth 

UK Chancellor Rachel Reeves couldn’t be clearer. Labour won’t be able to achieve anything if it can’t get the economy growing sustainably. “Stability is change,” as she said in the campaign. The strategic levers for this government are all in Reeves’ hands.

Her mission: To make Britain the fastest growing economy in the G7. Given the sluggish nature of the UK economy since the financial crisis, that is no mean feat. It would require a productivity revolution. And Reeves’ “securonomics” agenda stares straight into the barrel of that gun. Her aim is to boost productivity at home through investment, reform, and stability (her three-word mantra), whilst building resilience in our global supply chains.

Labour has taken a number of steps to put this into place. The timing of the International Investment Summit has driven a number of significant announcements:

• The government’s Industrial Strategy, which will drive all strategic interventions in the coming years, has been published. Clare Barclay, Microsoft UK CEO, will chair the Interim Advisory Council for the Industrial Strategy. As this is a Green Paper (rather than a fully-fledged government strategy), the government has set forward a plan for extensive consultation that will allow business and industry to shape it further.
• The Employment Rights Bill has been published, setting out the biggest set of labor market reforms for a generation. Labour says that it will only be possible to drive up productivity in the economy if there is a balancing of power between workers and employers.
• Poppy Gustafsson, formerly CEO of Darktrace, has been appointed Investment Minister and the Office for Investment has been given new roles and responsibilities to drive up FDI—this, after some false starts and at least one person turning down the role. Gustafsson will work alongside Varun Chandra, the high profile No. 10 lead for business liaison.
• Major investment banks and private equity firms have publicly set out their support for investing in Britain, alongside what the government says is the announcement of GBP 63 billion of private sector investment into the UK around the summit.

In addition, the new government has legislated to create a National Wealth Fund which will see the government partner with the private sector to invest in new technologies.

The government’s focus on fiscal discipline—a contrast they want to make with the last Conservative government, both for political reasons and to reassure financial markets—means they have legislated to create a “Fiscal Lock” where all “fiscal events” like budgets must be signed off by the Office for Budget Responsibility (OBR). Within weeks of taking office, Chancellor Reeves presented a bleak audit of the public finances to Parliament and warned that difficult measures would be necessary to bring them back in order. The Budget on October 30 will be the moment when these are announced—alongside an anticipated recasting of the fiscal rules that will allow more borrowing if it is focused on high value capital investment. There is some skepticism as to the ability of the limited and very specific tax rises in their manifesto to actually raise the amount planned for, therefore more measures are likely to come forward, including increasing the contribution employers make to National Insurance.

And finally, to set the long term framework—“stability is change,” remember—the government has confirmed that there will be a multi-year spending review next spring, setting out government spending plans for the long term. This will be accompanied by a 10-year infrastructure plan.

With all these measures, the Chancellor and her cabinet colleagues hope they will show business that they can be a strategic partner that can shape markets and drive investment. 

Mission Two: Clean Energy Superpower 

The government’s Mission to make Britain a clean energy superpower is the brainchild of Energy Secretary Ed Miliband, who drives all efforts in this policy space. In practice, this Mission revolves around Labour’s broader strategy to achieve net-zero emissions from energy by 2030 (alongside the broader commitment to get Britain to net zero by 2050), enhance energy security to insulate the UK from global shocks, and reduce energy costs for households and businesses. The Green Prosperity Plan aims to create 650,000 new high-quality jobs by 2030, focusing on industries of the future such as renewable energy and green technologies.

Ministers are serious about Labour’s plans to remold the UK economy and have wasted no time enacting their plans, despite intense criticism from the Conservative Party. The Government has already introduced the legislation to create Great British Energy, a publicly-owned energy company that will harness renewable energy sources like wind, solar, and tidal power. Furthermore, just last week the government announced plans to commit almost GBP 22 billion over 25 years to fund carbon capture and storage projects. Further funding announcements are expected at the Budget. Starmer, Reeves, and Miliband see this Mission as inextricably linked to the priority Mission of getting the UK economy growing.

The government has established the Energy Mission Board, chaired by Ed Miliband, to accelerate efforts towards clean power by 2030 and energy independence. In addition, Chris Stark has been appointed to lead a new “Mission Control,” which will act as a central hub to drive the clean power Mission. This team’s aim is to identify barriers and accelerate the progress of energy projects. 

Mission Three: An NHS Fit for the Future 

Labour entered government with a clear message that the National Health Service (NHS) is “going through the biggest crisis in its history.” Health Secretary Wes Streeting declared on his first day in the job that “from today, the policy of this Department is that the NHS is broken.” It was a bold position for a new Health Secretary to so confidently declare and has set the tone for the government’s approach to the health service since.

Streeting was straight out of the blocks in reaching a deal to end the junior doctors’ strike, which alongside the Chancellor’s decision to increase public sector pay, initially suggested a shift towards more friendly industrial relations under the new government. The decision since by members of the Royal College of Nursing to reject the 2024/25 pay award in England, however, has undermined this positive start.

Within weeks of taking office, Streeting also ordered an independent investigation “into the state of the NHS, to uncover the extent of the issues facing the nation’s health service.” He appointed non-affiliated peer Lord Darzi (himself a surgeon and former Health Minister) to lead the review. Published at a major conference at the King’s Fund in September, Lord Darzi’s report concluded that “the NHS is in critical condition,” with waiting times, access to general practitioners (GPs), Accident and Emergency (A&E), and cancer care among many areas of concern highlighted. In response, the prime minister outlined the government’s intention to build a 10-Year Plan framed around three “big shifts”: from an “analogue” to a “digital” NHS, from hospital to community care, and from treating sickness to preventing it.

On the vital yet politically challenging issue of social care, the chancellor’s decision to cancel the cap on social care costs came as part of her early attempts to fill what the government calls the GPB 22 billion black hole inherited from the Tories. Labour’s manifesto committed to “a programme of reform to create a National Care Service.” While this was absent from the government’s first King’s Speech, Wes Streeting reaffirmed their commitment in his speech to Labour Party Conference last month and it formed part of the wider package of employment reforms, recognizing that without an effective care system it is hard to get sick people or carers back into the workforce.

Following a tricky start for the government, we can expect to see much more of a focus on the core issues Labour campaigned on and their manifesto promises. The health service will form a central part of this effort, in particular their pledge to cut NHS waiting times, with Streeting likely to be a more high-profile figure for the government in the months to come.

Mission Four: Make Britain’s Streets Safe 

Ensuring the safety of Britain’s streets is a challenging and complex task. Upon assuming office, the Home Secretary pledged to introduce new powers to address antisocial behaviour, off-road biking and shoplifting— major issues that Labour identified as dividing communities across the UK. This commitment is accompanied by a promise to increase the presence of neighbourhood police, including 13,000 additional police officers and PCSOs. The Government plans to introduce legislation next year to establish “respect orders,” designed to ban persistent antisocial offenders from town centres, particularly for issues related to public drinking and drug use.

Labour’s promise to tackle illegal migration remains an area where much work is needed. Having appointed a lead for the Home Office’s newly-created Border Security Command, Ministers are acutely aware that voters expect tangible results in this area. Under pressure from the EU, Starmer recognises the need to compromise on policies regarding small boat crossings to secure the broader package of economic, defence, and security cooperation he seeks. The Prime Minister’s election campaign rhetoric about “smashing the people-smuggling gangs” is a piece of work that will take many more months to come to fruition. Demonstrating progress on this issue is key for the Government as they seek to tackle the threat of Reform UK and a potentially resurgent Conservative Party under its new Leader. 

Mission Five: Break Down Barriers to Opportunity at Every Stage 

Under Bridget Phillipson’s stewardship, the Department for Education has made some key announcements on skills and schools. It has also faced significant political challenge over the government’s plans to put VAT on private school fees.

Even before the summer holidays, the prime minister and education secretary announced the launch of Skills England, going on to publish the Skills England Bill last week. Starmer and Phillipson have reaffirmed Labour’s manifesto commitment to a new growth and skills levy, to replace the existing apprenticeship levy and include new foundation apprenticeships. There will be opportunities for business to engage with government as the detail of this policy area is further developed.

Phillipson and her team have also scrapped single-headline Ofsted judgements for schools, begun the first stage of the government’s plan to deliver 3,000 nurseries by upgrading spare spaces in primary schools, and joined the first meeting of the government’s Child Poverty Taskforce ahead of the planned publication of a Child Poverty Strategy in spring next year. As with other public sector workers, teachers received their recommended pay award almost immediately after Labour took power.

While these policy announcements demonstrate a government committed to concrete action to meet their final Mission, they have come under significant political challenge over their plans for VAT on private school fees. But whatever the headlines in the Daily Telegraph, this policy will come into force early in 2025. 

Foreign Policy 

Sir Keir Starmer’s resolve to move quickly on the domestic front and demonstrate his government’s commitment to delivery is matched by a clear eagerness to make an impact on the international stage.

Since taking office, Starmer, alongside his Foreign Secretary David Lammy, has engaged in an intensive series of diplomatic initiatives aimed at repairing relationships and rebuilding a reputation damaged by Brexit fallout and domestic political turmoil.

Alongside international facing activity, Labour’s early focus on foreign policy has also considered the UK’s defense and security capabilities. The party pledged to carry out a so-called “security sprint” in their first hundred days, intended to review all threats facing the country. They are also conducting a Strategic Defense Review which is due to be published in the first half of 2025.

For Starmer, taking early action is a strategic move intended to yield long-term political and economic gains. By fostering better relations with the European Union and neighboring countries, he aims to reduce trade friction resulting from former Prime Minister Boris Johnson’s Brexit deal, curb the flow of asylum seekers crossing the English Channel in small boats, and unify Europe in providing the necessary support for Ukraine in its war against Russia.

The prime minister has also invested significant time and effort in strengthening ties with the United States ahead of next month’s presidential election. Starmer has made three trips to the US as prime minister (he made none in four years as Leader of the Opposition). During his time in New York at the United Nations General Assembly last month, Starmer met with President Biden and other world leaders to reaffirm a renewed commitment to supporting Ukraine. Coupled with an assured performance at the NATO Summit in Washington days after winning power, Starmer and his ministers look at home on the world stage.

Notably, the prime minister’s last outing across the Atlantic saw Starmer meet former President (and Republican nominee) Donald Trump for the first time. The meeting was a clear signal of his resolve to forge a productive relationship with Trump should he win the presidency next month. Practicality over ideology is the name of the game now for Labour in office.

The new government’s first 100 days have been characterized by a proactive approach to foreign affairs, but this strategy is not without risk. Starmer has ruffled some feathers in his stalled efforts to win US and European support to allow Ukraine to use long-range missiles on targets inside Russia. Furthermore, the government’s decision to suspend 30 arms export licenses to Israel resulted in private, if not public, condemnation from some of Britain’s allies.

On relations with the EU, Starmer will also be under pressure to make greater concessions on issues of free movement of people, trade alignment, and asylum burden-sharing in return for a more productive post-Brexit relationship. The prime minister and his chancellor see this untangling of the post-Brexit “mess” as a key priority for delivering on their economic growth Mission.

The China question is never far from the minds of Foreign Office officials. Despite commissioning three separate reviews “to help reconnect Britain and deliver the UK Government’s Missions internationally,” David Lammy is yet to formally launch the “full audit across Whitehall of our relationship with China” which was promised within the first hundred days.

In his statement to the House of Commons on the one year mark of the October 7 attacks last week, Sir Keir Starmer again described the situation in Lebanon and Gaza as a “living nightmare.” The prime minister stuck to his carefully crafted language, calling on all sides to step back from the brink and “have the courage to show restraint.” The decision to impose controls on arms export licenses to Israel was welcomed by many on his backbenches, though some MPs want Starmer to go further with a blanket ban.

Taking unpopular decisions based on conviction is the hallmark of a strong leader, but Starmer is not deaf to the cries from some of his own MPs and Labour Party members. In the event of a further Middle East escalation, the prime minister may be forced to choose between his own MPs and the UK’s closest international allies.

For some in government, this early focus on foreign policy has come at the expense of the new administration’s domestic agenda. In the weeks ahead this international activity will be much more clearly connected to the government’s work at home in the UK. 

Other Notable Announcements 

There have been a number of other notable announcements and activities over the past 100 days.

Secretary of State for Transport Louise Haigh has overseen the introduction of legislation to give local leaders more power to run their own bus services, the passage of a Bill to support bringing rail services back into public ownership, and the resolution to the long-running pay dispute with train drivers.

The prime minister made an early demonstration of his manifesto commitment to further devolution with a tour of the UK and a meeting of the regional mayors in England in Downing Street, both in his first few days in office. Earlier this month, Starmer chaired the first meeting of the new Council of the Nations and Regions, bringing together the leaders of the devolved governments of Scotland, Wales, and Northern Ireland, as well as England’s mayors. These concrete actions early into the life of the government demonstrate a determination to deliver what they have promised on devolution.

The government set a very clear change in tone on housing, infrastructure, and planning in its first few days. They see this as key to growth and to meeting public demands for more and better housing. Reform of the planning system is the knottiest of problems and “getting Britain building” will be a political challenge against the objections of local residents and environmentalists, among others. But the government intends to work with everyone involved to overcome these objections while being clear-sighted about getting things moving. 

The Problems 

Rather than the victorious first 100 days Starmer will have hoped for, Labour’s return to government after 14 years away has often been somewhat overshadowed by negative news stories around staffing and donations.

The House of Commons has sat for relatively few days since July’s election, yet Starmer has still faced Parliamentary challenges, not least the decision to suspend seven Labour MPs following their rebellion on the two-child benefit cap. More recently, the government has faced criticism from across the political spectrum over its controversial decision on Winter Fuel Allowance and how this has been handled.

There is a distinct sense that after so many years in opposition, the Labour Party found themselves underprepared for the rigors of governing. Work on the transition to government was lacking, meaning their first 100 days have been derailed, often by events of their own making. Without a clear strategy for their early days in power, there has been an absence of a clear direction, allowing negative publicity to dominate. Alongside this, the party has been too slow to respond to difficult news stories.

Weeks of bad publicity has led to an unusually early feeling of dissatisfaction with the new government and the most recent polling shows a collapse in Labour’s lead over the (leaderless) Conservatives. Starmer’s administration know they have work to do to make up for lost ground. 

The Team

After weeks of negative publicity and an apparent lack of coordinated Government strategy, the prime minister undertook a dramatic reshuffle of his Downing Street team last week.

Following the prime minister’s decision to remove his Chief of Staff, Sue Gray, there is now a revamped team in No. 10. Led by Morgan McSweeney, widely credited with masterminding Labour’s landslide victory in July, the prime minister’s newly promoted closest advisers signify a much more political operation in Downing Street.

The negativity of the past few weeks speaks to a party not fully prepared for the reality of governing. The recent changes are an acknowledgment that they have not been performing as they should have been. With the appointment of James Lyons, Jill Cuthbertson, and Vidhya Alakeson to his top team, Starmer will hope the wealth of political experience around the table will start to reset weeks of negative news stories.

The focus will turn to the delivery of Labour’s much-hyped Missions for Government and their election manifesto, as No. 10 seeks to get a more strategic grip over decisions and announcements from across government. The Policy Unit in No. 10 is likely to have a bigger role, with Downing Street much more closely involved in departmental announcements. 

What Next?

Labour seek to put a challenging couple of months behind them with a busy few weeks of Parliamentary business ahead. The time between now and Christmas will see many of the landmark bills begin to progress through Parliament and so the real business of change can begin.

Front of the Labour leadership’s mind this month is the upcoming Budget. It seems likely there will be more investment but also more tax rises and rumors that circulate around Westminster over what measures the chancellor will take to address the black hole she identified so early in her time in No 11. Departmental expenditure limits for 2025-26 will also be set alongside the Budget.

It is widely reported that the chancellor is seriously considering a change to the government’s fiscal rules, allowing it to borrow more for infrastructure which would be invested into improving schools and hospitals, railways and roads, and renewable energy projects. An increase to the employer’s contribution to National Insurance also appears to be in the cards, after government figures have repeatedly declined to rule this out. There are likely to be other tax changes too.

Looking ahead to 2025, the government has promised a multi-year Spending Review to conclude in Spring 2025, and the Strategic Defense Review which will be published in the first half of the year. Managing the competing demands for limited government spending will be an act of political balancing that is hard to pull off.

And with a change in No. 10, there may also be some consideration as to whether the politicians round the Cabinet table are right for the job. It is not beyond the realms of possibility that we could see an early Cabinet reshuffle before next spring’s spending review—or perhaps even sooner.

Above all, the prime minister will be aiming to reset the narrative around the new government after its tricky start. With a number of high-profile interventions on the horizon, a revamped team in No. 10 and no new Conservative Party Leader until November, Labour will be hoping to use the coming weeks to re-establish their early momentum and to capitalize on their landslide majority.

The government wants to shift the dial on to delivering the change it promised. Ultimately, for Labour in government, key to every decision will be the question: “How does this help Labour win a second term?” 

Materials presented by Edelman Global Advisory UK. For additional information, reach out to Wes.Ball@EdelmanEGA.com