Labour's Growing List of Policy Reversals Under Keir Starmer
The Labour government has abandoned plans to postpone local elections for dozens of councils in May, marking the latest in a string of humiliating U-turns for Prime Minister Sir Keir Starmer. His time in office has been characterised by a series of rowbacks and climbdowns, from watering down flagship benefits bills to major reversals on controversial measures like winter fuel cuts.
Local Elections: A Democratic Retreat
Last year, Labour announced plans to postpone some local elections in 2026, citing concerns about resource shortages across certain councils. Authorities had argued that delivering local government reorganisation and covering election costs necessitated a delay. However, on Monday, the government dropped plans to delay elections for more than 4.5 million people in up to 30 councils after receiving legal advice warning against the move.
This U-turn followed Reform UK launching legal action against the government, with sources indicating the new legal advice related to a challenge scheduled for court next month. Nigel Farage claimed victory for his party, stating on social media: "We took this Labour government to court and won. In collusion with the Tories, Keir Starmer tried to stop 4.6 million people voting on May 7th. Only Reform UK fights for democracy."
Hillsborough Law: Security Services Exemption Sparks Delay
The government has pulled an amendment to its Hillsborough Law amid concerns that intelligence agencies could use it to avoid being bound by the proposed duty of candour. A government amendment would have allowed security services to determine whether their agents could give information to inquiries to prevent exposing operatives, but politicians fought to extend the duty to spies.
Mayor of Greater Manchester Andy Burnham and Liverpool counterpart Steve Rotheram reportedly warned it created too broad an opt-out for security services. The entire bill has since been held up over this issue after months of negotiations. MI5 chief Ken McCallum personally spoke to some MPs about the matter, while around 30 MPs backed a proposal by Liverpool MP Ian Byrne to ensure fuller application to intelligence officers.
Mandatory Digital ID: Compulsion Scrapped
In September, the prime minister announced the introduction of the "Brit card" to make it harder for people without the right to work to find employment. The digital ID, downloaded onto smartphones, was designed to verify an individual's right to live and work in the UK, similar to Estonia's system.
Now, a government source says the compulsory element has been "stopping conversation about what digital IDs could be used for generally." The source added: "Stepping back from mandatory-use cases will deflate one of the main points of contention. We do not want to risk there being cases of some 65-year-old in a rural area being barred from working because he hasn't installed the ID."
Business Rate Relief for Pubs: Chancellor's Retreat
Chancellor Rachel Reeves is planning another humiliating U-turn on scrapping business rate relief for pubs after backlash from the hospitality sector and Labour MPs. Ministers indicated she is set to change plans announced in the Budget amid fears it could close many British pubs and restaurants.
Ms Reeves had announced a cut in rates but her decision to end temporary COVID relief meant establishments would pay much higher bills. The relief, worth up to 40% of rates at a maximum of £110,000 annually, was due to end in April under original plans.
Tractor Tax: Threshold Raised After Farmer Fury
After months of pressure from farmers, Sir Keir watered down plans to tax inherited farmland. Under measures announced by Ms Reeves last year, farmers were to be charged 20% on agricultural assets above £1 million from April 2026, triggering fury over impacts on family-run farms.
Last month, Labour raised the threshold from £1 million to £2.5 million, meaning most farms would not pay. This climbdown followed crunch talks between National Farmers' Union president Tom Bradshaw and the prime minister in December, after a year of protests.
Income Tax Hike: Manifesto Pledge Preserved
Ahead of the Budget, the chancellor decided against hiking income tax despite two weeks of clear signals she was poised to break Labour's manifesto pledge. With markets spooked by the sudden U-turn, the cost of government borrowing spiked, with 10-year gilts up 12 basis points at 4.56%.
Treasury sources insisted the decision was due to better-than-expected economic data, but others blamed Downing Street interference to protect the prime minister from potential leadership challenges.
Benefit Cuts: Key Pillar Abandoned
Sir Keir suffered a significant blow to his leadership after being forced to abandon a key plank of controversial benefit cuts to get them through parliament in July. Just 90 minutes before voting, ministers announced plans to restrict eligibility for personal independence payments – the central pillar of reforms – were being dropped.
Sir Keir had already U-turned the week before when over 130 Labour MPs signed an amendment that would have effectively killed the bill. Concessions then included imposing tougher eligibility rules only on future claimants, leaving existing recipients unaffected.
Winter Fuel Payments: Eligibility Expanded
In July 2024, the chancellor announced pensioners not receiving pension credits or means-tested benefits would no longer get winter fuel payments – £300 to help with energy costs. After months ruling out a U-turn, the prime minister told MPs in May he now wants more pensioners eligible, citing an improving economic picture.
It was confirmed last summer that 9 million pensioners will be eligible – a huge uplift from the 1.5 million who received payments in winter 2024-25.
Grooming Gangs Inquiry: From Resistance to Acceptance
Sir Keir spent months brushing off calls for a national inquiry with statutory powers into grooming gangs as unnecessary. As Elon Musk called for a fresh probe, Labour's refusal looked increasingly untenable. Sir Keir stood firm, accusing those calling for an inquiry, including Tory leader Kemi Badenoch, of "jumping on the bandwagon of the far-right."
In yet another U-turn, after months of holding out, Sir Keir accepted Baroness Casey's recommendation to hold an inquiry in June.
Waspi Women: Compensation Promise Revisited
In a 2022 interview, Sir Keir called moving pension goalposts "a real injustice" and pledged action. However, since becoming prime minister, he sent his work and pensions secretary to tell Women Against State Pension Inequality they would not get compensation.
Complicating matters, in November the government announced revisiting the decision to deny payouts. Ministers claimed evidence not shown to then secretary Liz Kendall had since come to light and needed consideration.
National Insurance: Employer Contributions Increased
Labour's pre-election manifesto promised not to increase national insurance, stating: "Labour will not increase taxes on working people, which is why we will not increase national insurance, the basic, higher, or additional rates of income tax, or VAT."
Sir Keir and Ms Reeves used ambiguity around employer versus employee contributions to steamroll the pledge at Labour's first Budget, arguing they only promised to keep employee contributions frozen while landing firms with a 2% increase to employer contributions.
Two-Child Benefit Cap: Major Reversal Announced
In her Budget, Rachel Reeves announced ending the two-child benefit cap after months of pressure from backbenchers, campaign groups, and opponents. This marked a major U-turn, with ministers previously refusing to listen to critics.
In 2024, the prime minister enforced the whip on seven Labour MPs who voted against their party to oppose the cap. Set to take effect from April 2026, the change is estimated to reduce children living in poverty by 450,000 by 2029/30, costing the Exchequer £3 billion according to the OBR.
Workers' Rights: First-Day Protection Scaled Back
The government U-turned on its flagship manifesto promise to protect workers from unfair dismissal from their first day following concerns from business owners. Labour had backed basic rights including parental leave, sick pay, and protection under the Employment Rights Bill.
After the Bill struggled in the Lords amid concerns about impacts on small businesses, the government conceded to a six-month qualifier, calling it a "workable package" more likely to gain MP approval. The current qualifying period is 24 months.
