‘Unless economic growth delivers material benefits for more of us, Starmer risks suffering the same fate as US President Biden.’
Yesterday, Keir Starmer set out key milestones for what his government plans to achieve over the next four and a bit years before the 2029 general election.
During his ‘Plan for Change’ speech, he noted that too many in Whitehall were “comfortable in the tepid bath of managed decline”, and that he wanted to shake things up and create change. But has his ‘Plan for Change’ received a warm reception? Or has the response been more on the tepid side?
Starmer’s six milestones for delivering change by spring 2029 include creating economic stability, reducing immigration, cutting NHS waiting lists, improving children’s life chances, building 1.5 million new homes, funding 13,000 more police officers, and achieving a clean electricity system by 2030.
The UK appears to be taking a moment to reflect on how ‘Bidenomics’ underperformed at the US polls a month ago.
Under Biden, the US’ economic output grew by 12.6% and the unemployment rate fell to the lowest level in 55 years, at 3.4% in January and April 2023, and 4.1% in October 2024. But that wasn’t enough, with commentators suggesting that people couldn’t ‘feel’ the benefits of the country’s buoyant economy.
Similarly, in the UK’s political context, some feel Starmer’s focus on economic growth and addressing budget deficits means he is forgetting about people. However, initial reactions to Starmer’s speech yesterday seem to indicate that things might be changing on that front.
‘Focus on living standards welcomed, but Starmer must be bolder‘
Responding to Labour’s plan, chief executive of the New Economics Foundation (NEF), Danny Sriskandarajah, said: “It’s good to see this young government’s focus has seemingly shifted from bluntly growing the economy to improving people’s living standards.
“Unless economic growth delivers material benefits for more of us, Starmer risks suffering the same fate as US President Biden.”
Sriskandarajah added: “Starmer has said he is ambitious. But right now, he won’t be able to deliver on his ambition without being bolder on three key fronts: tackling spiralling inequality, serious investment in our vandalised public services, and devolving economic power to people and communities.”
He suggested that the government is trying to create change “with one hand tied behind its back”, stating that “Boosting our living standards and creating a green economy will not happen without scrapping our arbitrary fiscal rules, borrowing wisely, and taxing the wealthiest.”
Sensible targets
On the milestones, Theo Bertram, director of the cross-party think tank, The Social Market Foundation, said: “Overall, these targets are a sensible next stage of the government’s plan for delivery. They tell us what the government will do.”
Bertram said that Starmer’s government should measure public confidence in the delivery of its targets. He said: “This approach helps to ensure they are not just paper targets in Whitehall but the real world experience of voters, and stops targets from being gamed or becoming counterproductive (like Blair’s 48 hour GP target).”
He added that the approach “would also help Labour avoid Biden’s strategic mistake, which was to achieve targets that satisfied economists instead of ordinary people.”
The government is right to focus on early years and school-readiness
Principal policy adviser at the Joseph Rowntree Foundation, Abby Jitendra, said: “The lowest income families have endured years of unyielding and overwhelming struggle which in turn affects their children’s life chances, and their health.
“The Prime Minister is right that targets shouldn’t be there to make governments look good. But targets alone won’t solve the problem for families – government will need to focus attention on the drivers of hardship.”
“Households in the bottom 40% of incomes face being around £450 worse off in 2029 than they are right now. And yet housing costs, a major part of this pressure, are not properly reflected in the government’s measure. This risks the spreadsheet showing one thing, but families feeling something very different.
Jitendra said that the government is right to focus on early years and school readiness. She added that the government should prioritise transforming the life chances of disadvantaged families, making sure childcare and early education are good quality and affordable for them.
She also called for the government to scrap the two-child limit and ensure Universal Credit allows people to afford the essentials.
We also need to make sure that Universal Credit allows families to afford the essentials and scrap the two-child limit.”
Lib Dems will hold Labour’s feet to the fire, particularly on NHS and care
Liberal Democrat leader Ed Davey, argued that the plan was “simply changing the goalposts”. He added that his party “will hold this government’s feet to the fire on keeping its promises, most of all on fixing the NHS and care.”
He said it was “worrying” that there is no clear plan in the government’s targets to ensure people can see a GP when they need to.
Davey said: “Pledging to bring down waiting lists while neglecting GP services is like robbing Peter to pay Paul.”
“Millions are struggling to get through to their GP or having to wait weeks for an appointment, which just piles more pressure on our hospitals while people go without the care they need.”
Green Party leader says Labour is missing ‘wholesale ambition’
Responding to Labour’s milestones, Green Party co-leader, Adrian Ramsay, said: “These milestones aren’t a clear route to real change. Today’s listicle, while pointing in the right direction on a handful of issues, is missing the wholesale ambition and drive that a government elected on a change agenda needs.
Ramsay highlighted that the country is dealing with severe flooding and more storms over the weekend, with people struggling to heat their homes this winter and facing difficulties securing school places and doctor appointments.
He added that the Greens had wanted to see “a gear change in this government where they accept that we need to ask the very richest to pay more tax so we could properly fund all our frontline public services”.
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