Jari Partanen shares his insights about the developments of politics and economics in the United Kingdom.
In the July 2024 election, Keir Starmer’s Labour Party won a significant victory, achieving a 174-seat majority in Parliament. This election ended 14 years of Conservative leadership, ushering in a government focused on “national renewal.”
Starmer emphasized a shift towards social cohesion, economic rebuilding, and transparent governance. His victory speech highlighted commitments to improving public services and restoring trust in the government, aiming to “end the chaos” that many saw under previous administrations.
The Labour government’s October 2024 budget focused heavily on public investment and social welfare, key components of Starmer’s vision.
The UK’s October 2024 Budget, introduced by Chancellor Rachel Reeves, includes a mix of spending increases, tax adjustments, and new policies aimed at economic recovery, addressing social inequality, and supporting green initiatives. Major goals are centered around increasing revenue, reforming tax structures, and funding key sectors like healthcare and education.
Major initiatives included funding for housing, healthcare, and education, with a strong emphasis on infrastructure projects. The government proposed renationalizing the railways and increasing funding for essential services, aligning with Labour’s goal to make public assets more accessible and reliable for citizens.
Significant resources are allocated to the NHS, with £22.6 billion earmarked to support healthcare improvements and cut waiting times. Education funding increases aim to reduce disparities, including new VAT charges on private school fees and removal of their charitable business rate relief .
To raise funds for public services, the budget increases National Insurance rates for employers and raises Capital Gains Tax, among other adjustments. Higher taxes are introduced on wealthier estates through modified inheritance tax rules and changes to the remittance basis for non-UK domiciled individuals. These changes aim to address fiscal challenges without overly impacting average workers .
The budget also targets energy sector contributions, extending the Energy Profits Levy on oil and gas firms to support the energy transition. Electric vehicle incentives remain, as does support for green technology .
Despite above ambitious plans, the UK faces several ongoing societal challenges. Economic inequalities, exacerbated by inflation, continue to strain households, especially as costs rise for essentials like housing and food.
Additionally, there are pressures on the NHS, with staffing shortages and increased demand, leading to public frustration. Labour’s agenda aims to address these issues, though challenges remain in balancing fiscal responsibility with broad social spending.
In the current political climate, Starmer’s government is being closely watched as it seeks to bring about transformative change, but the need for effective, timely action is critical given the public’s high expectations and the weight of issues left from the previous government.
On foreign and defense policy, Prime minister Starmer’s administration seeks to reinforce the UK’s role globally, balancing defense commitments with diplomatic initiatives.
Policies emphasize sustainable international cooperation, particularly around climate goals and security alliances, including NATO.
The government maintains a strong stance on supporting Ukraine, coupled with a broader objective of reducing reliance on non-renewable energy sources and securing supply chains that align with national security.
Today, public and government affairs must be conducted under new levels of transparency and integrate creative angles from for example stakeholder engagement, campaign-thinking, sustainability as well as research and analysis capabilities. Our mission is to help companies and organizations to navigate in the current continuously changing operational environment and succeed in their own public relations on a domestic level in Finland, Sweden, Estonia, Latvia, Lithuania, Ukraine the US and internationally at the EU level.
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Jari Partanen
Director, Senior advisor Miltton Group +447379160805 jari.partanen@miltton.com
