A leading investment bank has issued a stark assessment of the economic trajectory under Sir Keir Starmer and Rachel Reeves, concluding that the country has not improved since the general election.
The analysis notes that gains in some sectors have been offset by new obstacles to construction and employment, leaving the economy in a position similar to July 2024.
This verdict stands in contrast to statements from Starmer and Reeves, who claimed to have left the nation in a stronger state and to have restored economic credibility.
Central to the critique are rising energy costs and stalled housing development, with promises of a clean energy superpower and a 1.5‑million‑home build target proving difficult to achieve.
Energy policy, particularly the decision to halt North Sea drilling, has discouraged investment and set higher costs for a generation, affecting energy‑intensive small and medium enterprises.
Housing policy has been described as a setback for private home construction, impacting builders, tradespeople, and suppliers whose work depends on new projects.
Infrastructure projects received a more positive assessment, with progress noted in the acceleration of major developments.
Over the two years, economic growth averaged roughly 1.2 percent annually, aligning with post‑crisis averages, while GDP per capita rose slightly faster, partly due to a reduction in immigration numbers.
The findings suggest that the promised decade of renewal has stalled, highlighting the importance of prioritizing competitiveness over ideological goals to drive growth.
