Keir Starmer and his top ministers are meeting outside Downing Street as they grapple with the latest economic warning from the Bank of England. The central bank has cut interest rates to offer some relief to mortgage holders but also cautioned households to brace for rising inflation.
This comes as a major blow to Chancellor Rachel Reeves, who received what many are calling a “wake-up call” from the Bank of England. Growth predictions for the UK economy have taken a sharp hit, with GDP now expected to grow by just 0.4% in the first quarter of 2024—far lower than the previously predicted 1.4%. Projections for 2025 are also weak at just 0.75%, with continued sluggish growth expected in the years ahead.
Labour’s meeting today is expected to cover these economic concerns, along with the party’s slipping poll numbers and preparations for the upcoming local elections in May. After securing a landslide victory in July, Labour’s popularity in Westminster polls has taken a dip, largely due to the tough economic situation inherited from the Conservatives.
Despite the cut in interest rates, Reeves admitted she remains unsatisfied with the country’s growth rate. She welcomed the move as a positive step for families and businesses but stressed that more needs to be done. She reiterated Labour’s commitment to kickstarting economic growth by removing unnecessary regulations and investing in infrastructure projects like roads and rail.
Starmer also took a hopeful stance on the rate cut, highlighting that this is the third drop since July. He insisted Labour is focused on growing the economy in a way that actually improves people’s lives—not just in statistics, but by making them feel better off.
As the government faces growing economic and political pressure, today’s meeting is a critical moment for Starmer and his team to address the challenges ahead and convince the public that Labour has a plan to turn things around.
