A Pattern of Reversals Since the 2024 Election
Sir Keir Starmer’s government has faced growing scrutiny after a succession of policy reversals since Labour entered office in 2024. Critics argue the repeated U-turns have undermined the party’s credibility and raised questions over its ability to deliver stable governance.
The reversals span key policy areas including welfare reform, taxation, digital identification, workers’ rights and support for pensioners. While ministers have defended the changes as pragmatic responses to new evidence or public concern, opponents say they reflect poor planning and internal divisions.
Digital ID Scheme Dropped After Backlash
One of the most recent reversals involves Labour’s proposed digital ID scheme, known as the “Brit card”. The system would have required workers to use a smartphone-based ID to prove their right to live and work in the UK.
Ministers have now abandoned plans to make the scheme compulsory. A government source said mandatory use was stifling broader debate around digital IDs, while officials also raised concerns that older or rural workers could be unfairly excluded if they struggled to access the technology.
Business Rate Relief for Pubs Set to Be Restored
Chancellor Rachel Reeves is also expected to reverse plans to scrap business rate relief for pubs following a backlash from the hospitality sector and Labour MPs. Under the original proposal, the temporary Covid-era relief worth up to 40% of business rates was due to end in April.
Industry groups warned that the change could force many pubs and restaurants to close. Ministers now concede the policy risked significant economic damage, prompting what critics describe as another embarrassing retreat.
Inheritance Tax on Farms Softened
After months of protests from farmers, Labour watered down its plans to impose a 20% inheritance tax on agricultural assets above £1 million. The threshold has now been raised to £2.5 million, meaning most family farms will avoid the charge.
The change followed sustained pressure from the farming community and negotiations with National Farmers’ Union president Tom Bradshaw. Labour insists the revised policy still targets wealthier estates while protecting smaller operations.
Income Tax Rise Abandoned at the Last Minute
Despite weeks of signals suggesting an income tax rise was imminent, the chancellor ultimately decided against it ahead of the Budget. The abrupt reversal unsettled financial markets, briefly pushing up government borrowing costs.
Treasury sources said improved economic data justified the decision, but critics claimed Downing Street intervened to avoid political fallout and potential leadership challenges.
Welfare Reforms Diluted to Pass Parliament
Labour suffered one of its most serious political blows when it was forced to abandon plans to restrict eligibility for Personal Independence Payments (PIP). The measure was a central pillar of the government’s welfare reforms.
Ministers dropped the proposal just 90 minutes before a parliamentary vote, following a rebellion by more than 130 Labour MPs. Further concessions included limiting tougher eligibility rules to future claimants only.
Other Reversals Add to Pressure on Leadership
Additional U-turns include reversing course on a national inquiry into grooming gangs, revisiting compensation for WASPI women, raising employer national insurance contributions despite manifesto pledges, ending the two-child benefit cap, and softening proposals on workers’ rights.
Collectively, the changes have fuelled criticism that Labour’s first years in power have been marked by inconsistency. Supporters argue the government is responding to evidence and public concern, while opponents claim the reversals risk eroding trust ahead of future elections.
