Is UK's Labour Party already losing its election goodwill?

Just months after storming to power in a landslide victory, the British Labour Party has found itself cornered.

Far from being a celebratory gathering, the three-day Labour Conference has turned into a loop of ministers defending their government’s unpopular proposal and freebies allegations Prime Minister Keir Starmer and Chancellor Rachel Reeves.

On the second day of the Labour conferences, Reeves was in focus as she took the centre-stage in defending her party’s record.

The scandals plaguing the Labour on the defensive include cuts to pensioners’ winter fuel allowance, the vague plans to rescue public services, and high taxes, heavy debt, and poor outcomes forcing the British elite to settle abroad.

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1. The freebies scandal

Starmer came to power on the back of anti-incumbency against the Conservatives and a clean image.

After years of scandal-laden leadership of Boris Johnson and then Liz Truss, and years of economic woes, Starmer was mandated with reigniting confidence in the premier’s office and offer solution to the United Kingdom’s many crises. Instead, he has found himself and his government grappling similar crises.'

Personally, Starmer and his wife are at the centre of a ‘freebies’ scandal. He and his wife, Victoria, are being slammed for accepting free sports tickets and money for clothes. The disclosure that Starmer’s Chief of Staff Sue Gray earns more than Starmer himself has led to further criticism.

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Starmer’s ministers have jumped to his rescue. Foreign Secretary David Lammy has said that as there is no wardrobe budget and British premier and his partner have to be at their best to represent the British public, accepting clothes in gifts is justified. Separately, Chancellor Rachel Reeves has also received £7,500 in gifts for clothes and has defended it.

“Juliet [one who gave gifts] and me have been friends for a long time, and she said to me about a year-and-a-half ago ‘I want to help you in the election campaign and the thing I’d really like to do is make sure that for big events and for the campaign trail, you’re smart and well turned out’. I really appreciated that, she’s made a big difference to me. That’s not something that I’m going to do in government,” said Reeves to Times Radio.

2. Cuts to pensioners’ winter fuel allowance

Reeves is also facing flak for drastically cutting pensioners’ winter fuel allowance.

As Starmer’s government is under pressure to reduce spending, Reeves has cut the winter fuel allowance to nearly all pensioners.

Only 1.5 million of the poorest pensioners will get winter fuel allowance this year out of total 11.4 million pensioners, according to BBC News.

The decision has been unpopular even among the Labour MPs. Reeves said she did not want to do this but this had to be done.

“This isn’t the decision that I wanted to make. It wasn’t a decision that I expected to make, but given the state of the public finances that I inherited, I think it was right to restrict the winter fuel payment to the poorest pensioners, and to make sure that all of the pensioners entitled to it are getting it,” said Reeves to BBC.

3. Controversial plans to rescue public services

While the Labour has long claimed that the Conservatives presided over the economic ruining over years, the party’s anecdotes are also emerging as unpopular. Even as Starmer and Reeves have said there would be no austerity, few have been convinced. For one, winter allowance for pensioners has already been slashed.

There is also expectations that taxes may be increased and that has further affected confidence in Labour government.

When asked during the conference whether capital tax would be hiked, Reeves refused to comment on the matter.

In an interview carried by The Guardian, Reeves could not answer the basic questions around the plan to rescue the British economy. She said the government would not return to austerity via budget-cuts to departments but also said that “detailed department by department spending will be negotiated”.

4. Looming exodus from UK

Citing the purported economic management during 14 years of Conservatives’ rule, Starmer has said that the next month’s budget may have “painful” tax hikes for the rich. The well-heeled among the British public are miffed.

Coupled with the heavy debt and poor economic outcomes that many are plagued with, the triple whammy has led to concerns that if the Liberal government pursues such policies, there may be a systemic exit of the rich from the country.

Starmer has said that the conditions for the public will be worse than they get better, but will that promise hold ground among the rich?