Keir starmer, the British prime minister, is about to embark on a major government reset after a turbulent first 100 days as premier, marred by missteps in policy, criticism from public figures, and an “all-expenses paid” scandal.
Starmer made significant changes in his leadership team to regain the momentum he had lost. This included the departure of Sue Gray as Chief of Staff, after she was criticized for her performance and management style.
Morgan McSweeney replaces Sue Gray
Starmer appointed Morgan McSweeney as Gray’s successor and also added two assistant chiefs to his staff.
James Lyons was appointed to the Downing Street media relations team in order to improve communication strategies after backlash regarding gifts given by Starmer and other senior ministers. Lyons previously headed policy communications for TikTok.
Analysts are skeptical about the effectiveness of these reforms.
Reeves, the Finance Minister is in everyone’s sights
The government is preparing for its Autumn Budget which will be announced on 30 October. All eyes are focused on the Finance Minister Rachel Reeves.
It is likely that she will outline her budget plan in order to inspire confidence in the government, which has been struggling to determine its fiscal policy.
Starmer and Reeves both tried to moderate the negative rhetoric regarding the UK’s economy by suggesting that a new era of renewal was on the horizon.
Reeves also suggested that he would be revising other proposals which could discourage wealth. These include reconsidering the tax increases for leaders of private equity firms and eliminating controversial UK non-domicile laws.
Reeves also promotes initiatives that encourage investment. These include a national wealth fund, and possible changes to pension rules, as a response to rumours about amendments to UK fiscal regulations.
‘Tough decisions’
The Labour Party has committed itself to the fiscal guidelines established by former Conservative governments, mandating that debt as a percentage of GDP must be reduced within 5 years.
The government is still facing a difficult battle, as negative feelings are a constant in the country.
Starmer’s warning about “tough choices” coming, along with the Treasury’s disclosure of the PS22 billion (US$29 billion) budget gap that was allegedly passed down from the Conservatives has added to the anxiety.
Jeremy Hunt, the former Finance Minister of Canada, has called these allegations “fictional.”
Citi analysts have called on the government to take swift action in order to implement its growth strategy.
The UK government warned the UK was at a crucial juncture. They stated, “A shift from low growth and low investment is becoming increasingly urgent.”
KPMG and Recruitment & Employment Confederation conducted a survey recently that revealed British companies have stalled their hiring because of uncertainty regarding government policies on taxation, industrial strategy and worker’s rights.
The consumer confidence also dropped, according to GfK, the biggest drop since Russia invaded Ukraine. This is despite an interest rate reduction that eased pressure on household budgets.
The post UK PM Keir starmer launches government overhaul after less than 100 day in office amid policy issues may be updated as new developments unfold.
