What were Labour’s most damaging issues of 2024?

2024 was a historic year for Labour. Under Sir Keir Starmer the party came to power for the first time in over a decade in July, winning with a massive number of seats.

It was a short election campaign, kicked off by rain-soaked former prime minister Rishi Sunak, which saw Labour storm to victory with the huge majority. Securing 411 seats, it was the largest for the party since the 1997 landslide under Tony Blair.

Standing on the steps of Downing Street on 5 July, new prime minister Sir Keir said people had voted “for national renewal” and “a return of politics to public service.”

“You have given us a clear mandate,” he added, “and we will use it to deliver change, to restore service and respect to politics, end the era of noisy performance, tread more lightly on your lives, and unite our country.”

But at the end of the year, things are looking a little more shaky for Sir Keir’s Labour party. The party has slumped to a new low in the opinion polls, new research from More in Common UK has revealed, standing to lose 200 seats if an election was held today.

Sir Keir delivers his victory speech, July 2024

Sir Keir delivers his victory speech, July 2024 (AFP via Getty Images)

Luke Tryl, the think tank’s executive director said the research “confirms the fragmentation of British politics that we saw in July’s election has only accelerated in Labour’s six months in office.”

He adds: “There is no doubt that many voters have found the start of the Starmer Government disappointing and Labour’s estimated vote share would drop significantly were there to be an election tomorrow.”

Against this backdrop, there is strong pressure from the public on the government to deliver more of the ‘change’ it promised on the campaign trail. And while there has been some good progress in delivering measures that are popular, others have proved extremely damaging.

Opinion polling from More in Common UK shows which of these have caused the most trouble for Labour, mapping how negatively certain decisions have been perceived, as well as how aware members of the public are of them.

Here’s are five the issues that proved most damaging to Labour in 2024:

Winter fuel payments

Less than a month after securing victory, Labour would announce changes to the winter fuel payment for pensioners, removing the cold weather benefit for all but the very poorest.

Rachel Reeves said this was a necessary step to balance public spending, as she revealed a £22bn ‘black hole’ in the government’s finances. Taking to Commons, the chancellor added it was not a decision she “wanted to make” but one which was necessary to “fix the foundations of our economy.”

Demonstrators protest against the decision to means test the winter fuel payment (Lucy North/PA)

Demonstrators protest against the decision to means test the winter fuel payment (Lucy North/PA) (PA Wire)

Proponents of the decision say the move was wise, with billions being spent on pensioners every year whose income meant they did not need the extra support. But criticism proved far louder as charities and campaigners urged the government to reconsider right to the last minute.

Those against the move said it was rushed and poorly-managed, forcing an estimated two million vulnerable pensioners to lose the winter fuel payment despite still needing it. Just before Christmas, The Independent revealed that high-demand caused by the changes meant that pensioners are facing waits of over 100 days to receive the payment.

Research from More in Common UK found that the issue was perceived very negatively by the public, with nearly 60 per cent saying it reflected badly on the government. It also made a strong impact, with just under 90 per cent said they were aware of the issue.

The ‘tractor tax’

Coming as part of the budget, what at first seemed like a minor tweak to inheritance tax rules has become a raging debate which continues to plague the government.

The measure saw the 100 per cent relief on inheritance tax on agricultural and business property scrapped for “the wealthiest estates.” This means that the tax will paid on farms worth more than £1 million 20 per cent (half rate) on everything above the threshold from 2026.

A tractor drives in London during a

A tractor drives in London during a “RIP British Farming” protest, December 11 2024 (Getty Images)

Labour says the changes will save £520 million a year for the government from 2028, and only affect a minority of farms. But farming industry figures such as the National Farmers’ Union (NFU) say Labour has underestimated the impact the measure will have on independent family farms.

The debate has seen several protests take place outside Westminster, with some farmers even taking their tractors to the capital. And with more action planned and polling showing Labour’s approval plummeting in rural areas, it doesn’t seem that the issue will be going away for the government in 2025.

Early release of prisoners

In September, Labour took the controversial step of releasing many prisoners before their sentences were up in a bid to ease the prison overcrowding crisis.

Lord Chancellor Shabana Mahmood said the move was necessary to prevent “a total breakdown of law and order,” as the automatic release point to enable eligible prisoners to be released on licence was dropped from 50 per cent of their sentence to 40.

Hundreds of prisoners were released early in September (Jeff Moore/PA)

Hundreds of prisoners were released early in September (Jeff Moore/PA) (PA Wire)

Following the decision, the prison population dropped by 2,188 in one week, the highest since 2012. Labour ministers blamed the Conservatives for leaving office with the issue unsolved, while the new opposition party said the early release laws were a danger to public safety.

Polling indicates that around 60 per cent of the public felt that the scheme reflected negatively on the government, with a high 85 per cent of people aware of the issue.

Employer NICs

Another Budget measure, employer national insurance contributions (NICs) are set to rise by 1.2 per cent from next April. The tax is the contribution paid by employers on top of their employee’s wages. The chancellor also confirmed Labour will cut the earnings threshold at which employers start paying this levy from £9,000 to £5,000.

Outspoken Wetherspoons boss Tim Martin has been critical of Labour’s Budget (Dominic Lipinski/PA)

Outspoken Wetherspoons boss Tim Martin has been critical of Labour’s Budget (Dominic Lipinski/PA) (PA Archive)

The decision caused strong political debate, focused on whether it would break Labour’s manifesto pledge to not raise taxes on “working people.” But critics point out that, while employer NICs are not meant to be passed on to employees directly, they often are indirectly as businesses look to offset their expense.

Following the announcement, several business leaders have come forward to urge Labour to reconsider the measure. The influential Confederation of British Industry has said the tax hike will cause economy to reach the “worst of all worlds.”

Freebies

In September, Labour came under instense pressure over ‘freebies’ for MPs after it was revealed that in opposition Sir Keir had accepted £107,000 in gifts since 2019 – more than two times any othe MP.

During the campaign trail, he was given £55,122.28 by donor Lord Waheed Alli, including through gifts like work clothing, accommodation, and £2,485 for “multiple pairs of glasses.” The then-leader of the opposition also accepted £20,000 in accommodation costs to help his son study for his GCSEs.

Lord Waheed Alli

Lord Waheed Alli (PA)

Other gifts included clothing for his wife, Lady Victoria Starmer, and thousands in tickets for Arsenal football games and a Taylor Swift gig. The musical event proved popular amongst Labour MPs, with several accepting free tickets.

Following the fallout, the prime minister paid back £6,000 worth of gifts and tightened the rules on gifts for all MPs. They will still be able to take them following the change, but “need to maintain the public’s confidence in the standards of propriety” when choosing whether to accept.