logo
As Starmer's first year ends in crisis, now comes a bigger battle

As Starmer's first year ends in crisis, now comes a bigger battle

BBC News3 hours ago

By the time polls closed at 10pm on 4 July 2024, the Labour Party knew they were likely to return to government - even if they could not quite bring themselves to believe it.For Sir Keir Starmer, reminiscing 10 months later in an interview with me, it was an "incredible moment". Instantly, he said, he was "conscious of the sense of responsibility". And yes, he confessed, a little annoyed that his landslide victory was not quite as big as Sir Tony Blair's had been in 1997."I'm hugely competitive," the prime minister said. "Whether it's on the football pitch, whether it is in politics or any other aspect of life."Sir Keir watched the exit poll with a small group of advisers as well as his wife, Victoria, and his two teenaged children. Even in that moment of unsurpassable accomplishment, this deeply private prime minister was caught between the jubilation of his aides and the more complex reaction of his children, who knew their lives were about to change forever.Looking back, the prime minister said, he would tell himself: "Don't watch it with your family - because it did have a big impact on my family, and I could see that in my children."
It's important to remember how sunny the mood in the Labour Party was at that moment - because the weather then turned stormy with remarkable speed.As the prime minister marks a year in office next week - which he will spend grappling with crises at home and abroad - British politics finds itself at an inflection point, where none of the old rules can be taken for granted.So, why exactly was Sir Keir's political honeymoon so short-lived? And can he turn things around?
Where Sir Keir's difficulties began
Many members of the new cabinet had never been to Downing Street until they walked up to the famous black door on 5 July to be appointed. Why would they have been? The 14 turbulent years of opposition for the Labour Party meant that few had any experience of government.This was a deficiency of which Sir Keir and his team were acutely aware.As the leader of the opposition, he had spent significant time in 'Privy Council' - that's to say, confidential, meetings with civil servants to understand what was happening in Ukraine and the Middle East.
He also sought knowledge from the White House. Jake Sullivan, then US President Joe Biden's National Security Adviser, told me that he spoke to the future prime minister "every couple of months" to help him "make sense of what was happening"."I shared with him our perspective on events in the Middle East, as well as in Ukraine and in other parts of the world," says Sullivan. "I thought he asked trenchant, focused, sharp questions. I thought he was on point."I thought he got to the heart of the matter, the larger issue of where all of these things were going and what was driving them. I was impressed with him."
Domestic preparations were not as smooth. For some, especially on the left of the Labour Party, this government's difficulties began with an over-cautious election campaign. Sharon Graham, the general secretary of the trade union Unite, told me that "everyday people [were] looking for change with a big C. They were not looking for managerialism".It's a criticism with which Pat McFadden, a senior cabinet minister, having run the campaign, is wearily familiar. "We had tried other strategies to varying degrees in 2015, 2017, 2019, many other campaigns previously - and they'd lost."I had one job. To win."
Breaking away from Corbynism
Having made his name as a prominent member of Jeremy Corbyn's shadow cabinet, Sir Keir won the party leadership in 2020 offering Labour members a kind of Corbynism without Corbyn. But before long he broke decisively with his predecessor.In the campaign this meant not a long list of promises, but a careful approach. Reassurance was the order of the day: at the campaign's heart, a focus on what Labour wouldn't do: no increase in income tax, national insurance or VAT.
Yet a big part of preparing for government was not just the question of what this government would do, but how it would drive the government system.For that, Sir Keir turned to Sue Gray.Having led the Partygate investigation into Boris Johnson, Gray was already unusually high-profile for an impartial civil servant. Her close colleagues were stunned when in 2023 she agreed to take up a party political role as Sir Keir's chief of staff."It was a source of enormous controversy within the civil service," says Simon Case, who until a few months ago as cabinet secretary was head of the civil service.Sue Gray's task was to use her decades of experience of the Whitehall machine to bring order to Sir Keir's longstanding team.She started work in September 2023, and the grumblings about her work began to reach me weeks, or perhaps even days, later. Those in the team she joined had expected her to bring organisational clarity. Tensions came when she involved herself in political questions too.
Gray also deliberately re-prioritised the voices of elected politicians in the shadow cabinet over unelected advisers.Questions about what exactly her role should be were never quite resolved, in part because Rishi Sunak called the general election sooner than Labour had expected.Gray spent the campaign in a separate office from the main team, working with a small group on plans for the early days in government. Yet those back in Labour HQ fretted that, from what little they gleaned, that work was inadequate.A few days before the election those rumours reached me. I WhatsApped a confidant of Sir Keir to ask what they had heard of the preparation for government."Don't ask," came the reply. "I am too worried to discuss it."
A lack of decisive direction
What is unquestionable is that any prime minister would have struggled with the backdrop Sir Keir inherited.Simon Case described to me how, on 5 July just after Sir Keir had made his first speech on the steps of No 10, he had thwacked a sleepless new prime minister with "the heavy mallet of reality"."I don't think there are many incoming prime ministers who'd faced such challenging circumstances," he said, referring to both the country's economic situation and wars around the world.The King's Speech on 17 July unveiled a substantial programme, making good on manifesto promises: rail nationalisation, planning reform, clean energy investment. But those hoping for a rabbit out of the hat, a defining surprise, were disappointed.
In so many crucial areas — social care, child poverty, industrial strategy — the government's instinct was to launch reviews and consultations, rather than to declare a decisive direction.As cabinet secretary, Case could see what was happening — or not happening — across the whole of government. "There were some elements where not enough thinking had been done," he said. "There were areas where, sitting in the centre of government, early in a new regime, the prime minister and his team, including me as his sort of core team, knew what we wanted to do, but we weren't communicating that effectively across all of government."Not just communication within government: for us journalists there were days in that early period where it was utterly unclear what this new government wanted its story to be.That made those early announcements, which did come, stand out even more: none more so than Chancellor Rachel Reeves's announcement on 29 July that she would means-test the winter fuel payment.It came in a speech primarily about the government's parlous economic inheritance. That is not what it is remembered for.
Some in government admit that they expected a positive response to Reeves's radical frankness about what the government could and could not afford to do. Yet it sat in isolation - a symbol of this new government's economic priorities, with the Budget still three months away.Louise Haigh, then the transport secretary, remembered: "It came so early and it hung on its own as such a defining policy for so long that in so many voters' minds now, that is the first thing they think about when they think about this Labour government and what it wants to do and the kinds of decisions it wants to make."The policy lasted precisely one winter. Sir Keir and his chancellor have argued in recent weeks that they were able to change course because of a stabilising economy.McFadden was more direct about the U-turn. "If I'm being honest, I think the reaction to it since the decision was announced was probably stronger than we thought," he admits.
'Two-tier Keir' and his first UK crisis
At the same time the chancellor stood up to announce the winter fuel cuts, news was unfolding of a horrific attack in Southport.Misinformation about who had carried out the attack fuelled the first mass riots in this country since 2011, when Sir Keir had been the director of public prosecutions. Given the nature of the crisis, the prime minister was well placed to respond."As a first crisis, it was dealing with a bit of the machinery of government that he instinctively understood - policing, courts, prisons," Case says.
Sir Keir's response was practical and pragmatic — making the judicial system flow faster meant that by mid-August at least 200 rioters had already been sentenced, most jailed with an average term of two years.But in a way that was not quite clear at the time, the riots spawned what has become one of the defining attacks on the prime minister from the right: that of 'two-tier Keir'. The idea that some rioters were treated more harshly than other kinds of protesters had been morphed over time into a broader accusation about who and what the prime minister stood for.Sir Keir had cancelled his family holiday to deal with the riots. Exhausted, he ended the summer dealing with questions about his personal integrity in what became known as 'freebiegate'.
Most of the gifts for which he was being criticised - clothing, glasses, concert tickets - had been accepted before the election but Sir Keir was prime minister now. Case told me there was a "naivety" about the greater scrutiny that came with leading the country.Perhaps more than that, there was a naivety in No 10 about how Sir Keir was seen. Here was a man elected in large part because of a crisis of trust in politics. He had presented himself as different.Telling voters that he had followed the rules was to miss the point — they thought the rules themselves were bust.
The political price of 'dispensing with' Gray
By the winter of 2024, the sense of a government failing to get a grip of itself or a handle on the public mood, had grown. A chorus of off-the-record criticism, much of it strikingly personal, threatened to overwhelm the government.There were personal ambitions and tensions at play, but more and more insiders - some of them fans of Gray initially - were telling me that the way in which Sir Keir's chief of staff was running government was structurally flawed, with the system simply not working properly.Gray announced in early October that she had resigned because she risked becoming a "distraction". In reality, Sir Keir had sacked her after some of his closest aides warned him he risked a mutiny if he did not.Sue Gray was approached both for an interview and for her response to her critics but declined.
To the end she retained some supporters in the cabinet including Louise Haigh. "I felt desperately sorry for her," she says."It was just a really, really cruel way to treat someone who'd already been so traduced by the Tories - and then [was] traduced by our side as well."Sir Keir appointed Gray. He empowered Gray. And he dispensed with Gray. This was the prime minister correcting his own mistakes - an episode which came at a high political price.
A bridge on the world stage
Yet on the world stage the prime minister continued to thrive, winning praise across political divides in the UK and abroad.Jake Sullivan, Biden's adviser, was impressed by Sir Keir's handling of US President Donald Trump, describing the Oval Office meeting where the prime minister brandished an invitation from the King as "the best I've seen in terms of a leader in these early weeks going to sit down with the current president".It's an irony that it is Sir Keir, who made his reputation trying to thwart Brexit, who has found for the UK its most defined diplomatic role of the post-Brexit era — close to the US, closer than before to Europe, at the fore of the pro-Ukraine alliance, striking trade deals with India and others.
And it has provided him with something more elusive too: a story — a narrative of a confident, pragmatic leader stepping up on the world stage, acting as a bridge between other countries in fraught times.The risk, brought into sharp relief during the Israel-Iran conflict in recent days, is that Trump is too unpredictable for such a role to be a stable one.The international arena has sharpened Sir Keir's choices domestically as well. Even while making welfare cuts that have displeased so many in his party, the prime minister has a clearer and more joined-up argument about prioritising security in all its forms: through work, through economic prudence, through defence of the realm.And yet, for plenty of voters Sir Keir has found definition to his government's direction too late. Labour's poor performance last month in the local elections plus defeat at the Runcorn and Helsby by-election were a blow to Sir Keir and his team.
It's far from unheard of for a governing party to lose a by-election, but to lose it to Reform UK on the same night that Nigel Farage's party hoovered up councils across England made this a distinctively new political moment.Two days afterwards, Paul Ovenden, Sir Keir's strategy director, circulated a memo to Downing Street aides, which I've obtained.It called for a "relentless focus on the new centre ground in British politics".The crucial swing voters, Ovenden wrote, "are the middle-age, working class, economically squeezed voters that we persuaded in the 2024 election campaign. Many of them voted for us in 2024 thinking we would fix the cost of living, fix the NHS, and reduce migration… we need to become more ruthless in pursuing those outcomes".For more than 100 of Starmer's own MPs, including many of those elected for the first time in that landslide a year ago, the main priority was ruthlessly dismantling the government's welfare reforms - plunging the prime minister as he approaches his first anniversary into his gravest political crisis yet. The stakes were beyond high. For the prime minister to have faced defeat on this so soon after the winter fuel reversal raises questions about his ability to get his way on plenty else besides.So, if this first year has done anything, it has clarified the stakes.This is not just a prime minister and a Labour Party hoping to win a second term. They are trying to prove to a tetchy and volatile country that not only do they get their frustration with politics, but that they can fix it too. None of that will be possible when profound policy disagreements are on public display.Starmer's Stormy Year: A year on from the landslide election win, the BBC's Henry Zeffman talks to insiders about the challenges Labour has faced in government (BBC Radio 4, from 30 June 2025)Top picture credit: PA and Getty Images
BBC InDepth is the home on the website and app for the best analysis, with fresh perspectives that challenge assumptions and deep reporting on the biggest issues of the day. And we showcase thought-provoking content from across BBC Sounds and iPlayer too. You can send us your feedback on the InDepth section by clicking on the button below.

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Third U-turn in a month leaves Keir Starmer diminished
Third U-turn in a month leaves Keir Starmer diminished

The Guardian

time26 minutes ago

  • The Guardian

Third U-turn in a month leaves Keir Starmer diminished

After his third U-turn this month, Keir Starmer will hope he has done enough to avoid a humiliating first Commons defeat as prime minister on Tuesday, even if he is now a diminished figure in front of his party and the country. Over Wednesday night and Thursday, Starmer's chief of staff, Morgan McSweeney, and his deputy, Angela Rayner, sat down with leading rebels and agreed a series of changes to the government's welfare bill that ministers hope will be enough to get it over the line. Those changes are likely to be significant enough to win over the support of dozens of moderates who had signed an amendment that would have put the bill on hold indefinitely. But they have damaged the prime minister's reputation for embracing tough reforms, and his chancellor's reputation for fiscal probity. Stephen Kinnock, the health minister, said on Friday: 'Keir Starmer is a prime minister who doesn't put change and reform into the too-difficult box. He actually runs towards it and says: 'Right, how do we fix it?' And I'm sure that that's what will be foremost in people's minds on Tuesday.' Meg Hillier, one of the leading rebels, told BBC Radio 4's Today programme: 'We're going to see some of the fine detail of this on Monday. We're expecting a written ministerial statement from the government, so we will get more detail then. But I think, in my view, we got as much as we can get in the time frame involved.' But others have spotted weakness. Helen Whately, the Conservative spokesperson on work and pensions, said: 'This is another humiliating U-turn forced upon Keir Starmer … The latest 'deal' with Labour rebels sounds a lot like a two-tier benefits system, more likely to encourage anyone already on benefits to stay there rather than get into work.' For the prime minister, this is the third time he has reversed course in recent weeks in the face of pressure from outside. Sign up to Headlines UK Get the day's headlines and highlights emailed direct to you every morning after newsletter promotion Earlier this month his chancellor, Rachel Reeves, announced she was undoing most of the cuts to winter fuel payments after a sustained political backlash. Just over a week ago, the prime minister told reporters on the way to the G7 in Canada he was dropping his opposition to a national inquiry into grooming gangs after one was recommended by Louise Casey. This week's decision to change key parts of the welfare bill could prove the most expensive of all three. Ministers will now limit their cuts so they only apply to new claimants and have also promised to lift the health element of universal credit in line with inflation. Along with promises to increase spending on back-to-work schemes and to redesign the entire system of Personal Independence Payments (Pips), the Resolution Foundation estimates the entire U-turn could end up costing £3bn. Reeves will set out the full costs of the package, and how she intends to pay for them, at the budget in the autumn. Asked about the cost of the U-turn on Friday, Kinnock would only say: 'Matters of the budget are for the chancellor, and she will be bringing forward a budget in the autumn.' But it is not just the cost of the immediate changes that Reeves will have to measure. Now she and the prime minister have developed a reputation for changing course in the face of backbench resistance, the chancellor is likely to come under heavy pressure over other issues Labour MPs care deeply about. Hillier said on Friday the prime minister would now have to listen more carefully to his parliamentary colleagues. 'There is huge talent, experience and knowledge in parliament, and it's important it's better listened to. And I think that message has landed.' Top of many Labour MPs' wishlist is an end to the two-child benefit cap. Starmer agrees on the importance of removing that cap altogether, but doing so would cost as much as £3.6bn a year by the end of the parliament. This is why, as the government's spending commitments grow, ministers are refusing to rule out tax rises this autumn. As Starmer has found out this week, angering nearly a third of your MPs is a costly business.

Rachel Reeves ‘must raise taxes' after welfare and winter fuel U-turns
Rachel Reeves ‘must raise taxes' after welfare and winter fuel U-turns

Times

time35 minutes ago

  • Times

Rachel Reeves ‘must raise taxes' after welfare and winter fuel U-turns

Rachel Reeves is likely to have to raise taxes to pay for the £4.5 billion cost of Labour's U-turns on welfare and winter fuel payments, leading economists have said. The Resolution Foundation said the government's decision to protect existing claimants of disability and health benefits from the impact of welfare reforms will cost about £3 billion. The decision earlier this month to restore winter fuel payments for millions of pensioners will cost another £1.5 billion. The strain on the public finances has been increased by global economic turbulence and the anaemic levels of economic growth. Ruth Curtice, chief executive of the Resolution Foundation, told BBC Radio 4's Today: 'Altogether they are looking for over £4 billion. They have completed their spending review, which means that spending totals for departments are set. Revisiting that will be very difficult. 'Presumably, after this, looking for further savings from the welfare budget would be quite challenging so that leaves only extra borrowing, which the chancellor doesn't have much space for unless she were to change her fiscal rules or tax rises.' The prime minister offered to water down the cuts during talks with senior backbenchers after accepting that he could not force the bill through unchanged, given that more than 120 MPs publicly oppose it in its current form. The scale of the climbdown is even bigger than expected. In a move that would cost the Treasury £1.5 billion, Starmer has offered to restrict changes to personal independence payments (PIP) to new claimants, protecting 370,000 existing recipients who have been vocal over their concerns. Claimants of the health element of universal credit — paid to those who are unable to work — will also be protected. The government had planned to freeze the benefit until 2029-30 in a move that would have resulted in 2.2 million people facing a cut of about £450. The reversal is expected to cost another £1.5 billion. Restoring winter fuel payments to 7.5 million pensioners will cost the government about £1.5 billion. The decision to abandon some of the government's flagship pledges will increase pressure on Reeves ahead of the autumn budget. Economists believe tax rises are inevitable. Meg Hillier, the MP for Hackney South & Shoreditch, one of the leading welfare rebels, said she would now support the bill. She said: 'This is a positive outcome that has seen the government listen and engage with people, the concerns of Labour MPs and their constituents.' However, one rebel, the Nottingham East MP Nadia Whittome, said on Friday morning that the concessions were 'nowhere near good enough', and would create a 'two-tier' benefits system. When asked if she had been persuaded to back off, she told Today: 'In short, no. The existing claimants will obviously be relieved, but there will still be £3 billion of cuts made here which will push people into poverty. 'Even these revised proposals are nowhere near good enough and frankly are just not well thought through. It would create a two-tier system in both PIP and the universal credit system when somebody became disabled.' She said the bill would 'punish' people for trying to work, because the planned cuts would now only affect future claimants. 'Say you're on universal credit now, you do what the government tells you to do and you get a job, your health worsens in a few years, you need to go back on universal credit but you get less — that risks punishing people who are finding work which is the exact opposite of what the Bill is trying to do,' Whittome said.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store