The New Labour Government and what they have planned.

On 4 July 2024, Labour, led by Keir Starmer, won a decisive majority, ending 14 years of Conservative rule.

  • Economic Challenges: Labour inherits a tough economic situation, with government borrowing at a projected 3.1% of GDP and debt at 91.7% of GDP. Rising global tensions have increased defence spending to 2.5% of GDP, and interest payments alone are projected at £65 billion for 2024/25.
  • Immediate Issues: Labour faces numerous immediate challenges, including:
    • NHS funding gap and social care
    • Public sector pay, particularly in the NHS
    • Local council bankruptcies
    • Housing shortages
    • Potential collapse of Thames Water
    • Overcrowded prisons and justice backlog
    • School and university funding crises
  • Tax Plans: Labour’s tax proposals include:
    • Reducing tax avoidance
    • Revising non-domiciled taxation
    • Levying VAT and business rates on private schools
    • Ending Capital Gains Tax treatment of carried interest
    • Windfall tax on oil and gas companies
    • Increasing stamp duty for non-UK residents

They also promise no tax increases on working people, though the definition of ‘working people’ remains unclear.

  • Upcoming Budget: Chancellor Rachel Reeves has ruled out an emergency Budget, planning a comprehensive review with the Office for Budget Responsibility. A full Budget is expected later in the year, but specific dates are uncertain due to the Labour Party Conference and other scheduling issues.
  • Parliamentary Schedule:
    • State Opening on 17 July, followed by six days of debate.
    • Summer recess will be delayed from the original 23 July date.
    • Conference recess in September/October may be shortened.
  • First 100 Days: Starmer emphasises immediate action. The first 100 days, ending on 12 October, are crucial for enacting change and setting the stage for future policies.