A year in power – How are Labour doing?

Labour won the 2024 election on the promise of change – so how’s that going?

Economic growth

The economy has grown in the last year - but only by 1%.¹ Chancellor of the Exchequer Rachel Reeves puts this down to increasing global uncertainty, but Labour’s own policies may also be at fault.

Minimum wage has risen, but that means businesses are under increased financial pressure. There are a quarter of a million fewer employees than there were a year ago, and the biggest decreases in employment are in the hospitality and retail sectors.¹

So, wages have gone up, but there are fewer employees to get those wages. Analysis by the Institute of Employment Studies suggests that employers are more hesitant to advertise new roles, and that this goes back to anxiety around Labour’s autumn budget.¹

Net migration

Net migration is down in the UK, but this is more likely due to tougher visa restrictions implemented by the previous government than any new ‘tough on migration’ policies pushed by Labour.

Labour also vowed to ‘smash’ the criminal boat gangs transporting illegal immigrants – but small boat crossings and the numbers of asylum seekers have increased under Labour’s rule.¹

Foreign affairs

Starmer has secured a tariff deal with the US, protected the AUKUS security alliance with Australia and the US, and acquired a new trade deal with India.

In terms of Ukraine, the UK has continued to work with the EU to support them and navigate the ever-changing relationship between Putin and Trump.

Education

Labour promised to recruit 6,500 new teachers in the UK - and make private schools pay for it. The number of secondary school teachers increased by 1,400 in the year since last November, and Special Educational Needs (SEN) teachers increased by 900, but there are also 2,900 less nursery and primary school educators.¹

Labour hasn’t met their target for new teachers, but they have introduced VAT increases on private school fees to increase the budget for these teachers if they should materialise. This may be partially why there are 11,000 fewer private school pupils than there were last year.¹

Welfare

Labour has done a few very public U-turns on proposed changes to winter fuel payments and the new welfare bill, but what comes next is still uncertain. All we know is that adult social services don’t seem to be any better off.

Health

Health Secretary Wes Streeting has acknowledged what many have long felt - that the UK’s health system is broken.

Labour seeks to fix it, starting with long waiting lists, low pay, and bureaucracy. They have promised to ensure that 92% of patients on a waiting list are treated within 18 weeks - a figure which is currently under 60%.¹ 

They also offered a 5.4% pay rise for resident doctors and are scrapping agencies in the hope of redirecting money to essential services. We have yet to see how this turns out.¹

Sources

1.    https://www.bbc.co.uk/news/articles/crenvyrnv33o 

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July 2025