With growth forecasts slashed and Reform UK overtaking Labour, Starmer demands urgent action

Sir Keir Starmer has ordered his ministers to act “further and faster” to boost the economy and reform public services, as Labour grapples with grim economic forecasts and plummeting public support.

At a six-hour emergency cabinet meeting in Lancaster House, Starmer admitted his government had been too slow and cautious, warning ministers: “We can either be the disrupters or the disrupted.” His urgency follows a devastating week—the Bank of England slashed growth forecasts, unemployment is set to rise to 4.75%, and a YouGov poll placed Reform UK ahead of Labour for the first time.

Chancellor Rachel Reeves echoed Starmer’s call, telling ministers that public service reform was essential to economic recovery. She faces mounting pressure after analysts warned that Labour’s £25bn national insurance hike has worsened the economic outlook, while inflation is now expected to hit 3.7% in 2025, far above the 2% target.

The economic turmoil has sparked internal cabinet tensions over potential spending cuts or tax hikes, which could be unveiled in Reeves’ March 26 budget. Though her allies insist the bleak forecasts strengthen Labour’s hand, businesses argue government policies are choking growth instead of reviving it.

Meanwhile, Ellie Reeves, Labour chair, briefed ministers on the party’s dire outlook for the upcoming May 1 local elections, acknowledging that Labour must act as an “insurgent” in Tory-dominated areas. Starmer, confronting the surge of Reform UK, accused populists of offering “grievances, not solutions”—but insiders fear the public sees Labour as weak and directionless.

With Labour’s once-commanding poll lead vanishing, the pressure is on Starmer and Reeves to deliver a credible plan before the economic crisis spirals further out of control.