Keir Starmer’s first 100 days in office were meant to be about resetting the country’s course and restoring stability after years of turbulence. But instead of a smooth take-off, Labour’s early days have been marked by unforced errors, missteps, and distractions. From controversies over clothing donations to internal reshuffles, Starmer’s start hasn’t gone entirely to plan.
The recent controversy over Labour ministers accepting luxury clothing donations became a symbol of the kind of distractions that have plagued Starmer’s government. It emerged that Starmer, his wife, as well as key Labour figures like Rachel Reeves and Angela Rayner, had accepted thousands of pounds worth of designer clothing and accessories from party donors. This revelation raised eyebrows, especially when contrasted with Labour’s message of solidarity with struggling families after 14 years of the Conservatives.
The optics were bad. At a time when Labour was cutting the winter fuel payment for pensioners, the idea of its leaders receiving tailored suits and personal shoppers didn’t sit well with voters still facing a cost-of-living crisis. Even though Starmer and his team quickly announced they would no longer accept such donations, the damage was done. The controversy highlighted a gap between Labour’s rhetoric of shared sacrifice and the perception of its leaders living in a different world.
Lisa Nandy, Labour’s Culture Secretary, defended the government’s decision to put an end to these donations, saying they didn’t want people to believe they were living “very different lives” from the average voter. But the reality is, this was a self-inflicted wound that could have been avoided—a classic case of a government stepping on its own message just when it needed to be projecting unity and focus.
Amid the turbulence of these first 100 days, a significant internal shake-up took place with the promotion of Morgan McSweeney to chief of staff. Following Sue Gray’s abrupt resignation amid intense scrutiny and infighting, McSweeney’s rise represents a pivot to a more disciplined, campaign-driven approach. As the mastermind behind Labour’s election victory, McSweeney’s no-nonsense style is now front and centre in Downing Street.
McSweeney’s promotion could not come at a more opportune time. Known for his relentless focus on winning and his knack for cutting through internal noise, he’s been tasked with getting Labour’s agenda back on track. His presence is already being felt, as the government aims to shift the narrative from internal missteps to delivering on promises and restoring faith in Labour’s leadership.
Starmer’s message of stability is resonating in some quarters, particularly among some business leaders and investors who are eager for a government that can offer a steady hand. Speaking at the UK’s International Investment Summit, Starmer outlined his vision for a partnership between the private sector and government, focused on economic growth and cutting unnecessary regulation. Leaders like Amanda Blanc from Aviva and Anders Opedal from Equinor praised this approach, signalling confidence in Labour’s ability to drive investment and economic reform.
However, the upcoming budget will be the real test of Labour’s economic strategy. Chancellor Rachel Reeves has hinted at potentially abandoning traditional debt rules to unlock billions for infrastructure investment—a bold move that could reshape the UK’s fiscal policy. But there are risks involved and what has been trailed ahead of the budget could pose even greater challenges for the business community.
The widely anticipated decision to increase capital gains tax for example, combined with proposed hikes in National Insurance for employers, signals a shift that could directly impact businesses’ bottom lines. While these measures are framed by their supporters as necessary steps for balancing the economy, they risk creating a more hostile environment for investment and growth – the exact opposite of what Starmer says he wants to achieve.
A hike in capital gains tax could mean a reconsideration of investment by business and a likely decrease in disposable capital available for future ventures. Similarly, higher National Insurance contributions will put additional pressure on employers, making it more costly to expand workforces or increase salaries at a time when economic growth is supposed to be the priority. These moves, while potentially popular with Labour’s base, could strain relationships with business leaders who are looking for the policies that support growth, innovation, and competitiveness they were promised during the election campaign.
Starmer’s first 100 days have not gone according to plan. Instead of a steady march towards stability, it’s been more of a stumble through self-made obstacles. Yet, with Morgan McSweeney now in the driving seat and a renewed focus on aligning Labour’s message with the concerns of ordinary voters, Starmer has acted quickly to try and change course.
The upcoming budget will be a make-or-break moment. If Starmer can steer the ship through these early storms and focus on the long game, he has a real opportunity to turn these initial stumbles into a story of recovery and renewed purpose.
The first 100 days were rough, marked by missteps and unforced errors. But with some recalibration, Starmer is trying to take back control. The Budget will be the clearest indication yet whether Labour’s rhetoric in opposition will match the reality in government.
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