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Economy
Jun 22, 2026
Analyzed by Llama- 4 Scout 17B 16E Instruct

Keir Starmer's Economic Legacy in Charts

AI Summary
Keir Starmer's economic legacy is mixed, with sluggish UK growth and higher employment costs. Despite this, Labour claims to have turned around the economy after 14 years of austerity.

The Lead

Keir Starmer used his leaving speech to lay out a long list of Labour's achievements in office – but his economic legacy appears mixed, with sluggish UK growth and higher employment costs.

GDP Growth Under Starmer

When Labour was elected in July 2024, Keir Starmer said economic growth was the 'number one mission' of his government. The economy grew by 0.6% in the second quarter of 2024, but fell to 0.2% in the third quarter under Labour. In early 2025, the economy picked up, but collapsed in the second half due to speculation about Reeves needing to make spending cuts or borrow more.

Economic Data Analysis

  • GDP growth: 0.6% in Q2 2024, 0.2% in Q3 2024
  • UK growth forecast to slow to 1% in 2026, from 1.4% last year
  • Inflation peaked at 3.8% in summer 2025
  • Unemployment rate rose to 4.9% in three months to April

Impact of Economic Policies

Labour's policies have had a mixed impact on the economy. The increase in employers' national insurance contributions was cited by the Bank of England as a factor in higher inflation. The government's efforts to reduce the national debt have been partially successful, with public sector net debt standing at 95.1% in May.

Future Economic Outlook

The Bank of England has cut interest rates six times during Labour's time in office, from 5.25% to 3.75%. However, expectations of further rate cuts were cast aside after the conflict in the Middle East began to push up oil prices and inflation. The next prime minister and chancellor will face important judgments on spending and budgeting.