Analysis: UK Labour Party Struggles at First Conference in Power

By Elizabeth Piper, Andrew MacAskill, and Alistair Smout

LIVERPOOL, England – The atmosphere at Labour’s annual conference in Liverpool, marking the party’s first major gathering after returning to power, lacks the anticipated elation. Instead, the event is marred by discussions surrounding the management of donations and cuts to winter fuel payments for pensioners, placing the new government under scrutiny less than three months after their decisive electoral victory.

Amid concerns about waning public support, ministers are under pressure to provide a hopeful vision to their base, particularly since many voters are disillusioned and question the party’s direction. Four sources familiar with the situation revealed that the government has encountered significant challenges, including substantial funding gaps and tough decisions that the previous Conservative administration avoided as it prepared for a change in leadership.

A senior Labour MP remarked that new ministers are uncovering neglected issues that the prior leadership found too daunting to confront. In response to a weary electorate, Labour leaders have openly communicated that the road ahead will be challenging, advocating for tough measures to stabilize the nation’s finances.

However, some supporters worry that this bleak narrative might be exaggerated, potentially allowing a generally unfriendly right-wing media to amplify discontent. Maurice Glasman, a Labour politician in the House of Lords, expressed frustration, noting, “It feels like three years have passed rather than just two months since taking office.”

A recent Opinium poll indicates that Prime Minister Keir Starmer’s popularity has plummeted significantly, making him less favored than former Conservative Prime Minister Rishi Sunak. With debt levels reaching their highest since the early 1960s, Starmer has tasked Finance Minister Rachel Reeves with stabilizing public finances while encouraging private investment to stimulate economic growth.

For Labour supporters who fought hard for the party’s recent victory, the cuts to winter fuel payments and upcoming austerity measures are unwelcome news.

The conference, which should be a celebration after the Conservative Party’s substantial electoral loss, has instead felt underwhelming. Tensions have been exacerbated by controversies surrounding Starmer and his ministers’ use of donations for personal expenses, overshadowing what should have been a moment of triumph.

Despite this, a source close to Starmer claimed that the conference has been one of the most positive in recent years, asserting that the donation controversy, while distracting, has not deterred the government from its goals. Labour highlights several achievements in its brief time in power, such as initiating a national wealth fund, concluding some public sector strikes with new agreements, and improving relations with the European Union.

Nonetheless, the overarching narrative of hardship before improvement has not lifted public spirits. Matt Wrack, the outgoing president of the Trades Union Congress, criticized the government’s focus on the negative, warning that it is “politically naïve” and could lead to serious consequences. He emphasized the need for Labour to articulate concrete plans for addressing issues like National Health Service wait times, education, and housing accessibility.

A recent report from Labour Together, a think tank aimed at repositioning the party toward the center after its leftward shift under former leader Jeremy Corbyn, cautioned that Labour’s electoral coalition is precarious. It highlighted a volatile electorate and historic lows in political trust and voter turnout, presenting a challenging path to re-election.

While some Labour lawmakers argue that the public should excuse early missteps from the new administration, there is widespread agreement that the party must transition away from a constant emphasis on blame. Glasman pointed out the necessity for the government to have a clear vision and sense of direction, warning that continued ambiguity in these areas could lead to a disillusioned public perception over the coming year.