LONDON — British Prime Minister Keir Starmer is seeking to rebuild his government and recover from a volatile first 100 days in office marred by policy failures, disasters and a “freebie” scandal.
Over the weekend, Starmer shook up his No 10 office after his Chief of Staff, Sue Gray, was forced to resign amid criticism of her performance and management style, as well as anger over fees.
Gray, who was hired by Starmer in 2023 to help him prepare for government, has been replaced by Morgan McSweeney, who led Labour’s winning election campaign. Two other persons were added as deputy chiefs of staff.
Meanwhile, Downing Street’s media relations team has been boosted with the appointment of James Lyons, recently head of policy communications at TikTok, to lead a new team following the backlash over gifts and “freebies” received by Starmer and other senior ministers .
Now, more than three months after the election, and with the Labor government still light on policy details, analysts are beginning to question whether the review will be enough for Starmer to show he has a plan for government.
“They don’t have any discernible policy platform or direction yet, so the ship is essentially at sea without direction,” Phillip Blond, director of the independent, nonpartisan public policy think tank ResPublica, told CNBC via email.
“Having better crew members will help, but it can’t make up for the lack of destination,” he added.
Tony Travers, visiting professor at the London School of Economics, noted that Starmer will have a steep hill to climb to regain control after allowing infighting to perpetuate under his watch.
“One challenge for the prime minister is that No. 10 got out of control in the first place,” Travers said by email.
“All ‘private offices’ are different and often go wrong. Keir Starmer must now show he is in control,” he added.
All eyes are now on the upcoming Autumn Budget due to be released on October 30, when Finance Minister Rachel Reeves is expected to present her spending plan for the new government.
Both Starmer and Reeves sought to back down negative rhetoric about the state of the UK economy at last month’s Labor conference, saying the country was ready for a period of national renewal.
Reeves has even proposed reducing tax increases for private equity bosses and scrapping plans to scrap the UK’s controversial regime, amid concerns that implementing such measures would spark a flight of wealth.
Meanwhile, the Chancellor of the Exchequer spoke of plans to boost investment, including through a new national wealth fund and possible changes to pension rules, in a bid to encourage growth as speculation grows over possible changes to the UK’s debt rule. Basilio. Labor had previously committed to a fiscal rule set by the former Conservative government, which said debt must be reduced as a share of gross domestic product (GDP) within five years.
However, negative sentiment has weighed on the country since Starmer warned of “tough decisions” ahead after the Treasury discovered a £22 billion ($29 billion) “black hole” in the public finances it allegedly inherited from Conservative Party. Former Chancellor of the Exchequer Jeremy Hunt denied the allegations as “fictitious.”
Citi analysts said in a note on Monday that the government should move quickly to implement its development plan for the country.
“The UK is approaching a make or break moment. The transition from a low growth and low investment balance is increasingly urgent,” they wrote.
New research released on Monday by KPMG and the Confederation of Recruitment & Employment showed that British businesses have suspended hiring due to uncertainty about the government’s plans for taxation, industrial strategy and workers’ rights.
Last month consumer confidence fell more than Russia’s invasion of Ukraine, even as falling interest rates eased pressure on households. according to GfK data.