Starmer under pressure to deliver in 2025 as Labour tested by local elections
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Sir Keir Starmer will be under pressure to prove he can deliver on Labour’s promises in 2025 as the party faces its first electoral test since its landslide general election victory. After Rachel Reeves’ first Budget in October saw £40 billion of tax rises that she said would “wipe the slate clean”, she will set out a spending review next year.
The Chancellor has said this will crack down on waste in Whitehall so money can go elsewhere, such as to improve living standards. She has ordered departments to find 5% savings, which could mean cuts for the Civil Service from 2026. Labour has also promised a timetable for boosting defence spending to 2.5% of GDP will be revealed in the strategic defence review in the spring.
It will be a delicate balance: Sir Keir could face a backlash to the cost depending on where the money will come from, but failing to show how they will meet the goal will raise questions at a time when he has doubled down on support for Ukraine and said the UK needs to bolster its military capabilities.
The Prime Minister ran on a platform of economic growth and has said he wants people to feel better off, but has acknowledged it will “take some time” before living standards improve across the country. He is putting Labour’s plans in motion, pledging to take on “nimbys” with planning reforms that aim to cut red tape and clear the way to build 1.5 million homes and get decisions made on 150 major infrastructure projects.
