Keir Starmer’s economic legacy – in charts

Keir Starmer used his leaving speech to lay out a long list of Labour’s achievements in office – but his economic legacy appears mixed, with sluggish UK growth and higher employment costs. The prime minister said his government had turned around an ailing economy, after 14 years of austerity. He said plans by the previous Tory administration to cut investment had been reversed and economic growth was the highest in the G7. For Starmer and the chancellor, Rachel Reeves, it has certainly been a rough ride over the past two years, especially with Donald Trump in the White House. At times, it seemed Reeves couldn’t catch a break. But have Labour’s policies benefited everyone and can Starmer take credit for all of its much vaunted successes? GDP has grown moderately under Starmer GDP chart When Labour was elected in July 2024, Starmer said economic growth was the “number one mission” of his government. In early 2024, the economy was growing in response to Jeremy Hunt’s pre-election tax cutting spree. This ended abruptly when it became clear Reeves would need to raise taxes to stay within Tory budget rules she pledged to maintain. The speculation was a growth killer. Growth of 0.6% in the second quarter of that year fell to just 0.2% in the third quarter under Labour. In early 2025, the economy picked up in response to threats by Trump to raise tariffs. …