It’s been nearly 7 months since the 2024 UK general election, and now is as good as time as any for politicos to take stock and analyse how the new Government is doing. Many will have their own opinions on how the Labour Government is delivering in their first administration since 2010, just ask farmers how they feel. The new Government has certainly had a baptism of fire, with many calling for Keir Starmer to have his latest Government ‘reset’. In recent months, the Labour government has faced declining approval ratings and a surge in support for Nigel Farage’s Reform UK party. A YouGov poll from early February 2025 placed Reform UK at 25% support, surpassing Labour and positioning several points ahead of the main opposition Conservatives.
There have been several factors that have contributed to Labour’s current challenges. The economic outlook still remains a significant concern. The UK economy experienced modest growth of 0.1% in the final quarter of 2024, and if Rachel Reeves wants to be judged by growth, then so far, we have not seen the returns she would have hoped for.
The public are frustrated. An Ipsos survey from November 2024 revealed that 53% of Britons were disappointed with Labour’s performance, including 28% of those who voted for the party in the last general election.
But as the old saying goes, don’t underestimate a dog backed into a corner. Labour knows that with the threat of Reform and the assumption that the Conservatives won’t be rudderless forever, they will have to deliver the change and growth they promised if they are to avoid being a one-term Government. In response to these challenges, the Government have started to pull every lever it can to kickstart economic growth and the development industry finds itself in the vanguard.
Angela Rayner unveiled significant planning reforms and changes to the NPPF to help achieve their commitment to building 1.5m houses in this parliament. If you’d like to read another blog post on the changes written by yours truly, you can find it here.
We’ve also seen Rachel Reeves throw her support behind a third runway expansion to Heathrow airport. This will be hard to stomach for some Labour MPs, many of whom previously opposed Heathrow’s expansion.
In an effort to lead the Government’s growth agenda from the front, Kier Starmer has said the Government will make it easier for small modular reactors (SMRs) to be approved by slashing “archaic” red tape in planning rules. Mini-nuclear power stations will now be included in planning rules for the first time and a set list of eight sites where they can only be built will be scrapped – opening up the possibility for SMRs to be built anywhere in England and Wales, where suitable.
Other pro-development messaging includes Angela Rayner’s recent green light for M&S’s flagship Oxford Street scheme – putting development and growth ahead of the opposition’s heritage arguments.
So, while the Government has made some mistakes in its first few months, it is at least sending out clear, consistent messages that it is prepared to throw political capital behind growth measures.
Ministers are also mindful of lessons from President Biden’s administration – where strong economic growth didn’t convert into votes because many voters felt it didn’t benefit them. The key electoral challenge for the Labour Government is keeping those 90-off Red Wall constituencies where the principal challenge comes from Reform – and one of the key issues for target voters there is the hosing affordability crisis.
For this reason, Angela Rayner has announced an additional £350 million investment in affordable housing. This funding supplements the £500 million pledged in the autumn budget, bringing the total to £850 million. The newly allocated £350 million is earmarked for the construction of 2,800 affordable homes, with half of these designated for social rent. Additionally, £50 million will be directed towards enhancing the quality of existing local authority housing.
So, with growth its key mission, the Government is placing plenty of emphasis on building things to get the economy going. The Government has invested a lot of political capital and is also targeting its messaging about ‘the right kind of growth’ at the voters whose support it hopes to retain.
Kier Starmer and Rachel Reeves are under significant pressure to turn rhetoric into results. Voters are less party loyal than ever before, and Reeves will only know too well the likely consequences if she fails.
