Sun. Jul 6th, 2025
Labour’s First Year: A BBC Analysis

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Sir Keir Starmer’s Labour government assumed power on July 5, 2024, securing a substantial majority and outlining ambitious objectives.

That vision to “change” Britain – a mantra frequently emphasized – has, over the past year, encountered the complex realities of governance.

How has the government fared thus far? BBC News correspondents provide assessments of six key policy areas within Labour’s agenda.

Key pledges: The government has declared its primary mission to be increasing disposable incomes, necessitating economic growth. This emphasis stems from the UK’s comparatively slow expansion over the preceding 15 years, which has hindered improvements in living standards for some.

Status: The government faced early challenges as the economy stagnated in the latter half of the year, prompting ministers to moderate their goal of achieving the fastest growth rate among G7 nations. This adjustment arguably reflects a recognition of the prevailing difficulties. A rebound at the start of 2025 resulted in a per capita GDP increase of approximately 0.5% by April compared to the previous summer. While progress has been made, it remains modest.

Analysis: According to Rachel Reeves, evolving global circumstances, including President Donald Trump’s trade policies and heightened geopolitical instability, have made growth ambitions more challenging.

However, the government’s own policies risk dampening the economic outlook in the near term. While the minimum wage increase has benefited millions of workers, this measure, along with other policies such as higher employer National Insurance contributions, is impacting business profitability and employment levels.

Employee numbers are down by more than a quarter of a million compared to a year ago, with the most significant losses occurring in the hospitality and retail sectors, which are particularly affected by rising wage costs. Analysis by the Institute of Employment Studies suggests that employer hesitancy dates back to the Autumn Budget, as businesses prepared for the implementation of these policies.

Key pledges: To “reduce net migration” and “dismantle criminal organizations facilitating illegal immigration.”

Status: Net migration, the difference between arrivals and departures, has significantly decreased since the election. However, this reduction is primarily attributed to visa restrictions implemented by the previous government. Further tightening of controls, including the closure of a visa program for social care vacancies, is planned under new legislation yet to be enacted.

Analysis: The government intends to reduce reliance on foreign labor by linking immigration policies with employment training initiatives. However, Home Office advisors caution that increasing the skilled workforce does not guarantee a decrease in migration. Ministers believe that stricter regulations on worker and student visas, coupled with enhanced enforcement against illegal employment, will lead to substantial decreases in foreign arrivals – although net migration remains considerably higher than it was a decade ago.

In addition to policies aimed at reducing overall numbers, the government pledged to restore order to the asylum system, eliminate the use of hotels, and “dismantle” criminal organizations facilitating illegal immigration. However, small boat crossings in the English Channel have increased significantly during Labour’s first year, and statistics suggest that more migrants are receiving asylum support than at the time of the election. The backlog of initial asylum decisions has decreased, but this has been offset by a sharp increase in appeals. Hotel usage has also slightly increased, according to recent data.

While irregular migration constitutes a small proportion of total arrivals, it significantly impacts the government politically and economically. The Treasury’s spending plans rely in part on projected savings from ending the use of asylum hotels by 2029, and the rise of Reform UK in opinion polls is seen by some as an indication of public dissatisfaction with small boat crossings.

The government has established a Border Security Command to coordinate efforts to reduce illegal migration. Furthermore, new legislation will treat people smuggling as a crime equivalent to terrorism. Agreements with international partners and reports of an imminent returns agreement with France are viewed as crucial to fulfilling the pledge to “dismantle the gangs.” However, much depends on factors beyond the UK’s control.

Key pledges: Labour committed to “re-engaging with allies and forging new partnerships to advance security and prosperity at home and abroad.” This included maintaining close ties with the US and resetting the UK’s relationship with the European Union. It also pledged “unwavering support for Ukraine.”

Status: Allies suggest that Keir Starmer has successfully managed his relationship with Donald Trump, securing a tariff agreement and US backing for a politically sensitive plan to cede sovereignty over a joint military base in the Chagos Islands. He has also preserved the AUKUS security pact with Australia and the US.

The UK has sustained its support for Ukraine, collaborating with European allies to maintain pressure on Russia and help repair relations between Presidents Trump and Volodymyr Zelensky following a disagreement. Starmer also led European discussions regarding plans for a post-war “reassurance force” in Ukraine. The UK has finalized a trade agreement with India. It has also improved diplomatic relations with the EU, easing certain trade regulations and agreeing to a UK-EU defense pact.

Analysis: Starmer has observed that governments can be consumed by foreign affairs, and his first year is no exception. A primary criticism of the government is that it is overly cautious. Has it exerted sufficient pressure on Russia, specifically targeting the $300 billion (£220 billion) in assets frozen in European jurisdictions, or by sanctioning Russian wealth in London?

Regarding the Middle East, the government has reduced some arms sales to Israel. However, it faces increasing pressure from MPs to more strongly oppose Israel’s operations in Gaza and formally recognize a Palestinian state.

Critics argue that changes to UK-EU relations are too modest to significantly boost the economy and should be more ambitious. The China audit has been completed, but the government is declining to publish the document, citing security concerns. Critics suggest that ministers are hesitant to jeopardize Chinese investment by explicitly addressing security concerns.

Regarding climate change, some MPs express disappointment at the lack of leadership demonstrated. While in opposition, Labour pledged to “rebuild Britain’s reputation on international development.” Instead, it has reduced foreign aid to fund defense spending, a move that some believe has strained relations with developing countries.

Key pledges: An initiative to recruit 6,500 new teachers in England, funded in part by levying VAT on private school fees.

Status: The government has not yet met its teacher recruitment target, according to the most recent official figures, which date back to November. VAT has been implemented on private school fees across the UK, leading to concerns about pupils leaving the private sector.

Analysis: Training teachers takes time. The number of new trainees increased by 6% this academic year, but remained below target.

The latest figures from November show that the number of secondary school teachers rose by 1,400 in a year, while teachers in special schools and pupil referral units increased by 900. However, the number of primary school and nursery teachers fell by 2,900.

In May, Education Secretary Bridget Phillipson clarified that the aim was to recruit 6,500 expert teachers “across secondary and special schools.” This prompted criticism from Conservative shadow education minister Neil O’Brien, who accused the government of “moving the goalposts” by excluding primary school numbers.

Labour stated its intention to fund the recruitment drive by adding 20% VAT to private school fees. The Independent Schools Council reported that private school fees were 22.6% higher on average in January compared to a year ago – £7,382 per term for a day school, up from £6,021.

Figures released last month indicated that the number of private school pupils fell by 11,000 in a year. The government stated that this was “within historical patterns,” but private schools report that more pupils are leaving than usual. Concerns have been raised about smaller private schools being pushed towards closure and the impact on students with scholarships, for example.

Given the controversy, there will be close scrutiny of whether the money raised will have the desired impact.

For many parents in the state sector, the need for more school staff is pressing. Government proposals to reform the Special Educational Needs and Disabilities (Send) system – which has 1.7 million pupils, up 5.6% since last year – are due this autumn, and parents will want to know whether staffing will match demand.

Key pledges: Welfare reform to support more people into work and to champion the rights of disabled people, plus a National Care Service that delivers consistent, high-quality support across the country.

Status: There have been significant U-turns on welfare reform and efforts to restrict the number of pensioners receiving the Winter Fuel Payment. An independent commission into reforming adult social care started work in April 2025.

Analysis: When Labour came to power, many of those who work with the most vulnerable in society were hopeful. In conversations, they would tell me that even with the nation’s finances tight, surely neglected services and support for older and disabled people would be prioritised?

The government would argue that is exactly what it is doing, but 12 months on, the more printable judgments of the same people would be “disappointment” and “confusion.” That disillusionment is rooted in three policies – all in part shaped by saving money.

First, the surprise decision to limit the £300-a-year Winter Fuel Allowance to only pensioners in the greatest need, meant the universal payment was taken away from ten million older people. After pressure from Labour MP’s, the government reinstated the allowance for three quarters of pensioners, but the U-turn raised questions about its authority and priorities.

Second came the welfare bill. The aim was to save nearly £5bn a year by 2030 on spiralling benefits costs. It tightened the criteria for Personal Independence Payments (PIP) and Universal Credit – the latter is paid to both working and non-working people on low incomes. Again, pressure from MPs led to another government U-turn and plans were watered down. It has potentially wiped-out long-term Treasury savings, according to some economists, and the whole saga has left many disabled people worried.

Finally, there is disappointment over what the government has not done. Reform of the overstretched, understaffed and financially squeezed adult social care system has effectively been pushed into the long grass. The Casey Commission, the latest review to look at how to fund social care in the long-term, will produce recommendations next year, but its final report is not due until 2028.

There is a financial and human cost to every policy and in the last year the government has discovered how difficult it is to find the right balance.

Key pledges: Cut hospital waiting lists, end 8am scramble for GP appointments, scrap NHS England.

Status: Some modest progress on waiting lists but more work to be done.

Analysis: Health Secretary Wes Streeting shocked many in the health world by saying on day one that the NHS was broken. His aim was to acknowledge what many patients felt – and now he is trying to demonstrate that he can fix it.

Near the top of that list is hospital waiting lists. The government says it has delivered a pledge for two million extra NHS appointments in England in its first year. But as of April, the waiting list for an operation or another planned appointment stood at 7.39 million – which has fallen since the election.

As things stand just under 60% of those patients are seen and treated within 18 weeks, well under the NHS’s 92% target. That number has improved by less than a percentage point since Labour took office.

The government has promised to hit that target by March 2029, something doctors and patient groups have warned will be an uphill battle.

Elsewhere, a new contract has been agreed with GPs, with more money for surgeries, a promise to cut red tape and a 5.4% pay rise for resident – formerly known as junior – doctors. Staff are now again balloting for strike action, spelling possible trouble ahead.

Ministers have been eager to show a Labour administration is not afraid to reduce duplication and cut what they claim to be bureaucracy. In the process, NHS England, the administrative body responsible for managing the health service, has been scrapped along with hundreds of other agencies. But there is a risk that NHS managers will be distracted by the reorganisation above improving performance for patients, while reallocating savings to frontline services may not be simple.

And the publication this week of a long-awaited ten-year plan for the NHS may promise a new network of neighbourhood health centres, but how long will it take for them to make a difference?

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