New polling has revealed that around half of Labour’s own voters no longer trust Rachel Reeves’ handling of the economy, after a torrid year of tax rises, rising unemployment and stalling growth. Polling by Britain Elects has revealed that since August 2024, Labour voters’ saying their party is the best to handle the economy has plummeted from 85% to just 51%, while those who don’t know whether the Tories or Labour is best has risen starkly from 13% to a whopping 41%.
Across all voters, trust in Rachel Reeves’ ability to look after the country’s finances has plummeted quicker than any government for 30 years. Labour’s lead over the Tories has collapsed from 14 points to 0 in their first year, only beaten by John Major’s 1992 government when Black Wednesday saw the Conservatives’ lead over Labour plummet from 10 points to -13. By comparison, Tony Blair’s 1997 government saw Labour’s lead in the economy double during his first year in power, rising from eight points to 21 points.
The Tory governments of 2010, 2015, 2017 and 2019 all saw their lead over Labour on the economy remain stable during their first years in power.
Responding to the shocking polls, Britain Elects’ Ben Walker warns the figures “are stark” due to both the speed of the collapse in trust, and the loss of trust among Labour voters.
He said: “The economy is a catch-all issue for competence. Behind it, lies the critical issue for the British electorate: cost of living. If voters trust you on the cost of living you can keep your own lights on. It is the source of the primary current of voter apathy.
“And so, most voters, irate or not with the winter fuel decision, vexed or not with welfare reform, are primarily looking for relief on their cost of living. And until they receive it, they will punish the government at the polls. And the ballot box.”
After hiking taxes by £40 billion last year, Rachel Reeves is now expected to have to raise another £10 to £20 billion this autumn to fill the latest black hole in the country’s finances.
Successive u-turns on both Winter Fuel cuts, and welfare cuts, mean Ms Reeves’ sums no longer add up.
Growth, which she repeatedly said would be her number one priority in government, has also failed to materialise both due to international turbulence, and the tax rises she imposed on businesses last year.
She is also reportedly mulling a wealth tax on Britain’s shrinking number of millionaires and billionaires due to pressure from hard-left Labour backbenchers.
Last week the International Monetary Fund said Ms Reeves will need to raise taxes on working people, scrap the pensions triple lock, or start charging for the NHS if she wants to meet her fiscal rules later this year.
The global economic watchdog’s warning was cited as “confirmation” by the Tories that she has mismanaged the economy.
Shadow Chancellor Mel Stride fumed: “This is yet more confirmation that Labour’s mismanagement means yet more tax rises are coming in the autumn.
“The IMF’s conclusion is clear – the Chancellor has already maxed out the credit card, her only options are to cut spending or raise taxes. The welfare debacle showed Labour are completely incapable of reining in spending. Businesses and families must brace for an even higher tax burden.
“Be in no doubt, this mess is down to Labour’s choices, and it is the working people Labour claim to be protecting who are paying the price.”