New Labour, No Change

As the new Government settles in, it’s a good time to reflect on the early signals they are sending. While we are still awaiting the details of their first budget, the omens are far from encouraging. Aside from the furore over Sir Keir's clothes, the bigger picture is that government appears to be returning to the familiar ground of austerity—an approach that, as we’ve seen before, can stifle public services and limit long-term growth. Cuts to crucial benefits, such as the Pensioners’ Winter Fuel Allowance, are already on the table, and this looks like a poor decision at a time when the cost-of-living crisis continues to bite. These cuts risk leaving some of our most vulnerable citizens even more exposed to the hardships of inflation and rising energy bills.

The government is straitjacketed by rigid fiscal rules and red lines on Europe, which is preventing them from exploring the full range of tools available to stimulate investment and growth. Austerity alone will not solve the challenges we face; what is desperately needed are bold measures to encourage economic recovery, investment in green energy, and infrastructure that would modernise the economy and create jobs.  

There are some glimmers of hope. It's pleasing to see the government finally being more honest about immigration. With the abandonment of the deeply flawed Rwanda deportation scheme, it seems there is at least some recognition that a more humane, practical approach to immigration is needed. Likewise, the plans for investment in energy and rail infrastructure look promising—assuming they are followed through.  

However, one glaring omission in the government’s priorities is the issue of sewage pollution. Despite widespread public concern, there is little meaningful progress on this front. The reality is that regulating the water industry alone will not solve the problem of raw sewage being dumped into our rivers and seas. What is needed is substantial investment in upgrading our water infrastructure, something that cannot be achieved without a serious commitment of resources. 

As we await the budget, it’s clear that this government needs to focus on long-term, sustainable solutions rather than austerity-driven cuts if it is to deliver the investment, growth, and public services the country desperately needs. Labour austerity is just as bad as Tory austerity, Labour Brexit as damaging as Tory Brexit. This doesn't look like the change we were promised.