Six milestones announced
The Prime Minister today set out six milestones in his Plan for Change:
-
Cut NHS waiting lists – the NHS will carry out 92% of routine operations within 18 weeks by March 2029. Starmer has said that the NHS must “reform or die.”
-
Raise living standards – to increase real household disposal income, which is projected to grow a half a per cent a year over the parliament.
-
Rebuilding Britain – to build 1.5 million homes by the end of this parliament as well as 150 major infrastructure projects.
-
Net zero – decarbonise the UK’s electricity supply by 2030. Double the UK’s onshore wind capacity, triple solar power, quadruple offshore wind and upgrade the grid to cope with new sources of power.
-
Improving education – to raise the number of primary ‘school ready’ children – both educationally and socially - from current rates of 67% to 75%.
-
Crime – to recruit 13,000 new police officers by the time of the next election.
What does it mean for business?
After a less than dynamic start, critics will argue Starmer has watered down his manifesto-era pledge for Britain to become the fastest growing economy in the G7. The devil is always in the detail. The document accompanying today’s speech says government will ‘aim’ for such progress whereas previously it was described as a ‘goal.’
Businesses may rightly be concerned that the change in emphasis reflects Britain’s troubling economic indicators. In the aftermath of Chancellor Reeves’ budget, the CBI predicts that most firms are expecting economic activity to decline in the first quarter of 2025. Moreover, according to a Bank of England survey of thousands of bosses, more than half of British businesses expect to put up prices and cut jobs in response to the changes in National Insurance.
While Starmer may no longer wish to be wedded to his ‘fastest growing’ pledge, it remains the case that growth is the core focus for the government. Indeed, there is cause for optimism given the latest OECD economic outlook predicts growth of 0.9% for the UK in 2024 followed by 1.7% in 2025 and 1.3% in 2026 – higher than the corresponding figures for Germany (0, 0.7% and 1.2%) and France (1.1%, 0.9% and 1.0%).
Top takeaways
From the election campaign until now Starmer’s No10 has been ‘mission-focused’ – the targets may have changed slightly today but our advice to business remains the same.
- Being relevant to the fulfilment of the Missions and milestones will give you the best chance of gaining the ear of government.
- Prepare for the potential of further interventionist legislation or changes in taxation if the missions continue to prove unachievable.
- Building bridges with a wide range of stakeholders, including opposition parties, to grow a base of supportive advocates who understand your concerns constraints and ambitions.
- Don’t forget to engage with Labour backbenchers – many will be far from the prospect of Ministerial office and some considering the prospects of a one term administration, so may be keen to support exciting campaigns to boost their profile and help their constituents.
- Just because a Mission may seem unachievable to you in any circumstances doesn’t mean you should forego the opportunity to engage and persuade.
Labour analysis: Josh Kaile
Five months into a Labour government and the Prime Minister chose today to announce his ‘plan for change’ - definitely not a reset moment, apparently. Instead it was billed as ‘doubling-down’ of Labour’s missions for government.
Speaking from Pinewood Studios, Starmer appeared eager to use the symbolism of an iconic British film location that is the best of Britain and beamed around the world. Labour claim they have similarly bold ambitions for their government and want to be seen globally as a progressive beacon to be followed.
As the warm up act before Starmer’s appearance, Deputy Prime Minister Angela Rayner went to great lengths to talk about Labour being on the side of the working class, something they have struggled to settle in the minds of their core voters after a rocky few months.
This was a speech designed to remind the British public why his government is doing what it is doing, and what that change will look like once it has been achieved. The conversation since the Budget has understandably focused on the cost of that change, with headlines around National Insurance contributions and its potential impact on growth, as well as more controversial policies like inheritance tax changes for farmers.
And so the narrative, unhelpfully for Labour, has been centred on the cost to individuals of Government’s changes not the wider societal benefits, and that’s what the Prime Minister hopes his speech today will alter. He didn’t shy away from his understanding that these are ambitious targets that won’t be achieved without clearing the blocks.
Starmer fired a warning shot at the civil service, claiming that ‘too many people in Whitehall are comfortable’. He also effectively declared war on ‘NIMBY’s’, saying that people will not be able to stand in the way of delivering growth. This is all intended to clear the way for 150 major infrastructure projects which he claims will triple the number of infrastructure decisions that the last Parliament was able to deliver.
Having heard Keir make similar speeches in opposition when he was focused on changing the Labour Party ahead of an election, there was a similar feeling of his words being aimed in part at his own troops too, be that his Cabinet or backbench MPs - reminding them of the mission ahead of them and that if they’re not up for the fight, he will happily find others who are.
In the hours and days that come, there will be those that say there’s nothing really new in here, and what does it all mean. The government will likely respond that the plan for change provides more metrics on which to measure the achievements of the Prime Minister and his government. Keir acknowledged that they face an almighty task to meet these milestones and that they are ‘starting at ground zero’.
So for businesses and organisations wanting to engage with government, today will not have provided huge amounts of new information, but it’s a recommitment of focus and the offering of a hand in partnership. They remain keen to work with industry to deliver economic growth, to rebuild state infrastructure and make people feel better off, across every part of the country.
The opportunity is there to connect to the government’s language of delivering growth and change, and finding pragmatic approached to delivery. Starmer says his government will welcome the ability to work in partnership: it’s now time to put that to the test.
Opposition perspective: Mario Creatura
When a rocket fails to take off, you prepare for a relaunch.
When a Jaguar-style messaging campaign unintentionally blows up, you should reset.
When politicians stand up to reassert their values or re-emphasise their intentions, it indicates that a very real fear is being felt that they are failing.
For that’s exactly the context that our Labour government finds itself in. Despite having a huge Parliamentary majority, after barely six months in office they have alienated huge swathes of the population already.
220 significant signatories in the hospitality industry joined over 80 of the biggest brands opposing Labour’s record tax-rising Budget. This early in an administration, that’s not normal. Add that to furious farmers blockading Westminster and pensioners protesting Parliament over fuel payment cuts and you can understand why the government might be increasingly concerned about accumulated and unrelenting fury.
With allegations of flip-flopping on promises, fraudulent donor behaviour and resigning Secretaries of State, it’s no wonder that Labour have not only lost their recent poll lead, but Sir Keir’s personal rating has fallen off a cliff – down a historic 49 points in barely six months, a faster drop than any Prime Minister since Blair.
A relaunch indicates at best a perceived drift from their mission, at worse a Downing Street without a grip and seized by panic.
And it’s reinforced by the realisation that it’s only going to get worse for our government. Barely a fortnight ago, the Chancellor promised at the CBI conference that she ‘won’t come back for more tax from business’. Yesterday’s OECD analysis indicates that’s not a credible claim, that to meet her own fiscal ambitions Reeves will need to raise taxes again. When the Prime Minister refused to reiterate the earlier CBI comments at PMQs on Wednesday, his lack of a definitive response said it all.
So in that context, shifting the goalposts of your supposed ‘five clear missions’ makes political sense. If you know you can’t deliver on your original pledges, why not change the criteria that you’ll be measured by to help shape the future narrative of your success or failure?
This isn’t the first time Starmer has played fast and loose with his promises:
- He made 10 pledges during his leadership campaign that have all now been broadly abandoned.
- Labour then set out their initial ‘five missions for Britain’.
- Another ‘three foundations’ were added to reinforce areas of weakness on the economy, defence and immigration.
- Then in June we were introduced to Labour’s six ‘first steps for change’
- In the Budget there were ‘seven pillars for growth’
- Recently Labour have said they have ‘two priorities’ on living standards and immigration
If these latest ‘six milestones’ work, Team Starmer will be pleased. A new set of objectives for a new year, and a renewed attempt to tackle the complexities of government.
But in doing this Labour are making it harder for voters to understand what it is that they actually stand for. Business and the public have been very clear that they want stability and certainty from our leaders, instead they are being presented with yet more intangible, political-speak that is designed to provide cover for future unpalatable choices.
Politically, this could start to create a narrative of weakness about the government. Starmer doesn’t know what he stands for. Labour haven’t a clear direction for our country. Have they already lost a singular vision for our future? If that starts to take hold in the public consciousness, then it creates surprisingly early openings for the Conservatives to begin advancing politically – but also for Reform on the right, or even the Green Party on the left.
Oftentimes, it’s actions and not words that make the difference to political fortunes. Starmer will be hoping he can deliver real, truly felt change very soon.
If he fails, and the public doesn’t feel change happening, then we may be faced with the prospect of yet another relaunch sooner than he’d like.
If you would like to get in touch with the team, please contact Head of Public Affairs, Tim Snowball, at tim.snowball@mhpgroup.com