Labour's U-turns in government have cost Britain an estimated £8.2 billion in growth, according to a report by the Resolution Foundation. The think tank found that policy uncertainty under Sir Keir Starmer is higher than in any of the previous seven parliaments, despite the government's pledge to restore stability.
The report attributes the economic hit to U-turns on personal independence payments, universal credit, winter fuel allowance, and the two-child benefit cap. It does not include recent reversals on business rates for pubs and inheritance tax rules for farmers, which are expected to cost an additional £300 million and £130 million respectively.
Researchers found that Chancellor Rachel Reeves has announced £6.1 billion of U-turns, second only to Liz Truss's mini-budget in the last 15 years. The total number of U-turns since the general election is at least nine, with some counts reaching 13.
Greg Thwaites, research director at the Resolution Foundation, said: 'Twenty years ago, the UK economy was close to catching up with Germany. But decades of stagnation mean that we've now been caught by Italy and are miles behind our former peers.' He urged the government to 'ramp up its plans' and 'redouble efforts to unblock housebuilding in major cities, focus job support for young and older workers, and decide whether to bite the bullet and reverse some of the damage from Brexit.'
