When Sir Keir Starmer stepped into 10 Downing Street in July 2024, he inherited a nation grappling with economic uncertainty, strained public services, and a business community yearning for clarity and confidence. Now, 100 days into his premiership, Starmer’s Labour government has taken decisive steps to reshape the UK’s economic landscape, signaling a commitment to stability, growth, and innovation.
Economic Stability and Fiscal Responsibility
At the heart of Starmer’s agenda is a pledge to restore economic stability. Chancellor Rachel Reeves unveiled a budget featuring £40 billion in tax increases — the most significant since 1993 — aimed at addressing a £21.9 billion fiscal shortfall left by the previous administration. Measures included raising employers’ National Insurance contributions and adjusting income tax thresholds, reflecting a commitment to fiscal prudence.
Reeves introduced the concept of “securonomics,” focusing on infrastructure, education, and labor supply to drive growth. This approach emphasizes unlocking private-sector investment as the “lifeblood of a successful economy,” marking a shift from traditional reliance on public spending.
Trade and International Relations
In a significant move, the UK secured a trade agreement with the United States, reducing tariffs on British car exports from 27.5% to 10% and eliminating duties on steel and aluminum. This deal is poised to bolster UK manufacturing and export sectors. However, the agreement includes clauses aligning UK supply chains with U.S. security standards, potentially complicating relations with China and impacting sectors like offshore wind and pharmaceuticals.
Workforce and Employment Reforms
The government has enacted comprehensive employment reforms, including a 6.7% increase in the National Minimum Wage and enhanced rights for workers, such as immediate protection against unfair dismissal and the right to request flexible working arrangements. These changes aim to create a more equitable labor market and address long-standing concerns about job security and work-life balance.
Infrastructure and Housing Initiatives
Recognizing the need for infrastructure development, the government has committed £5 billion for housing investment in the 2025–26 fiscal year, focusing on increasing the availability of affordable housing. Additionally, plans are underway to simplify planning rules to facilitate the construction of housing and critical infrastructure, signaling a proactive approach to addressing the UK’s housing shortage.
Energy and Environmental Commitments
Starmer’s administration has reaffirmed its commitment to environmental sustainability by establishing Great British Energy, a publicly owned clean power company aimed at reducing energy bills and enhancing energy security. The government has also pledged to eliminate fossil fuels from the UK electricity grid by 2030, positioning the UK as a leader in green energy initiatives.
Immigration Policy Adjustments
In response to public concern and the rise of the Reform UK party, the government has announced plans to reduce immigration numbers and tighten settlement criteria. Proposed measures include raising salary thresholds and English language requirements for employment visas, ending overseas recruitment for care home jobs, and requiring ten years of residency for citizenship. While aimed at addressing public sentiment, these changes have raised concerns among business leaders about potential labor shortages and the impact on economic growth.
Justice System Reforms
Addressing the issue of prison overcrowding, Justice Secretary Shabana Mahmood has announced plans to construct three new prisons and implement early release schemes to alleviate pressure on the system. These measures are part of a broader strategy to increase prison capacity by 14,000 places by 2031, ensuring public safety while managing systemic challenges.
Summary
In his first 100 days, Prime Minister Keir Starmer has embarked on an ambitious program to revitalize the UK economy, enhance public services, and restore confidence among the business community. Through a combination of fiscal responsibility, strategic investment, and progressive reforms, the government aims to lay the foundation for sustainable growth and prosperity. While challenges remain, the initial actions taken by Starmer’s administration reflect a clear vision and a commitment to building a resilient and dynamic Britain.