As 2025 draws to a close, Britain completes its first full calendar year under a Labour administration since 2009. The journey has been anything but smooth, with the government's performance fuelling public disillusionment and even sparking whispers of a potential challenge to Prime Minister Keir Starmer's leadership after next May's local elections.
Significant Achievements: The Government's High Points
Amid the political noise, Labour did secure several notable victories. The spring saw a flurry of major trade agreements, starting with a landmark deal with India in May. This was swiftly followed by a significant, though complex, pact with the United States and the first post-Brexit UK-EU summit, which promised a 'reset' in relations.
On the domestic front, the Renters' Rights Act stands out as legislation with profound impact. Granted Royal Assent this year and effective from May 2026, it abolishes Section 21 'no-fault' evictions in England and ends fixed-term leases, reforms the previous Conservative government failed to enact.
Progress was also made on tackling violence against women and girls. The government's Crime and Policing Bill introduced new measures, and Home Office Minister Jess Phillips revealed a new protection order had been used over 1,000 times in its first year.
Even a potentially disastrous state visit from former US President Donald Trump in September passed without major embarrassment for the Prime Minister, despite being preceded by the sacking of Ambassador Peter Mandelson over his Jeffrey Epstein links.
Stumbling Blocks and Setbacks: The Year's Low Points
However, these successes were often overshadowed by significant struggles. The issue of immigration, both legal and illegal, proved a persistent weakness. The year was marked by the Epping asylum protests, Starmer's controversial 'island of strangers' speech—which he later said he regretted—and strong local election showings for Reform UK. New Home Secretary Shabana Mahmood faces an uphill battle, with asylum hotel occupancy rising over the summer.
Internal party discipline also frayed. Andy Burnham's failed attempt to rally opposition to Starmer before the party conference weakened both figures. Furthermore, muddled briefings from the Prime Minister's own allies last month, suggesting Health Secretary Wes Streeting was plotting a coup, served only to erode Starmer's authority.
The most shocking event was the September resignation of Deputy Prime Minister Angela Rayner. She stepped down from her roles as Housing Secretary and Labour deputy leader after admitting to underpaying tax on a seaside flat, depriving the government of a key communicator and a voice from the party's left.
Economic Headaches and the Road Ahead
Chancellor Rachel Reeves endured a difficult year, failing to spur significant economic growth despite declaring it her top priority. The government executed a major U-turn on reforms to Personal Independence Payment (PIP) and other benefits in June, undermining planned welfare savings. Her Autumn Budget was then clouded by criticism over the clarity of explanations for tax increases.
In a December speech, Keir Starmer told the public: ‘In the year ahead, you will see the benefits of our approach.’ As speculation about his leadership simmers, the Prime Minister will be hoping that 2026 provides more concrete evidence to win back a sceptical electorate and solidify his party's grip on power.
