Every Labour U-turn as Starmer set to row back on pubs rate relief
Sir Keir Starmer’s tenure has been characterized by a series of humiliating U-turns, from watering down the government’s flagship welfare bill to a major U-turn on last year’s controversial winter fuel cut.
Here as the Chancellor prepares for a fresh U-turn on plans to scrap business rates relief for pubs following backlash from the hospitality industry and Labor MPsIndependent It takes a look at all the times since winning the election in 2024 that the government has gone back on its word or disappointed voters.
Business fee discount for bars
Rachel Reeves is planning another humiliating U-turn on plans to scrap business rates relief for pubs following a backlash from the hospitality industry and Labor MPs.
Ministers told Independent It has been stated that the Chancellor is ready to change the plans he announced in the Budget due to fears that many pubs and restaurants in Britain could close their doors.
Ms Reeves had announced rates cuts in her Budget, but the decision to end temporary covid aid meant organizations would be paying much higher bills.
The benefit was worth up to 40 per cent of rates, up to a maximum of £110,000 per year, and was due to end in April under Ms Reeves’ original plans.
tractor tax
After months of pressure from farmers, Sir Keir watered down plans to tax inherited farmland.
Under plans unveiled by Ms Reeves last year, farmers would be charged a 20 per cent fee on agricultural assets worth more than £1 million from April 2026. This triggered a storm of anger, with fears that family-run farms would be worst affected.
But last month Labor said it was increasing the threshold from £1 million to £2.5 million, meaning most farms would not have to pay it.
The drop follows difficult talks between the prime minister and National Farmers’ Union (NFU) chief Tom Bradshaw in December, following a year of protests over the measures.
Income tax increase
Ahead of the budget, the chancellor decided against increasing income tax, despite clear signals in two weeks of public speeches that he was prepared to break the party’s manifesto commitment not to do so.
Markets feared sudden U-turn Finance Times Two weeks before the budget, the government’s borrowing costs rose sharply, with 10-year bonds rising 12 basis points to 4.56 percent.
Treasury sources insisted the decision was taken because of better-than-expected economic data, while others blamed Downing Street’s intervention to protect the prime minister from a possible leadership challenge.
Benefit cuts
Sir Keir suffered the biggest blow to his leadership since coming to power after being forced to abandon a landmark plan of controversial welfare cuts to push through parliament in July.
Just 90 minutes before the vote was due to start, ministers announced plans to restrict eligibility for personal independence payments (PIP), a central pillar of the government’s reforms, were being scrapped.
Sir Keir was forced to make a U-turn a week ago when more than 130 Labor MPs signed an amendment that would effectively kill the bill. Among the concessions announced at the time was a plan to impose stricter eligibility rules only on future PIP claimants, without affecting existing recipients.
Winter fuel payments
In July 2024 the chancellor announced that pensioners who do not receive pension credit or other means-tested benefits will no longer receive winter fuel payments; this is a £300 payment to help with energy costs during the colder months.
The prime minister, who spent months trying to prevent a U-turn, told MPs in May that he now wanted to ensure more pensioners were eligible for the payments; He claimed that this was a result of the improving economic outlook.
After weeks of speculation about what the changes would look like, it was confirmed last summer that 9 million pensioners would be eligible for the payment; This is a big increase from the 1.5 million retirees who received the payment in the winter of 2024-25.
grooming gangs
Sir Keir spent months dismissing calls for a legally mandated national inquiry into gang grooming as unnecessary.
As Elon Musk waded headlong into the debate by calling for a new investigation into the scandal, Labor’s denial appeared less likely to hold up. But Sir Keir stood firm and even accused those calling for an inquiry, including Tory leader Kemi Badenoch, of “joining the bandwagon of the far right”.
But in yet another U-turn after months of resistance, Sir Keir accepted Baroness Casey’s recommendation for an investigation in June.
bumblebee women
In an interview in 2022, Sir Keir said: “You keep in mind your whole working life the date when you can retire and get your pension and just as you get closer to that date the goalposts move and you don’t get it and that’s a real injustice.
“We need to do something about this. That wasn’t the basis on which you were paid or the basis on which you worked.”
But somehow Change of familiar tune since he became Prime MinisterLast year Sir Keir sent his work and pensions secretary to tell Women Against State Pension Inequality: wasp women would not receive any compensation.
To further complicate matters, in November the government announced it would reconsider its decision to deny payments to Waspi women.
Ministers claimed evidence that was not shown to then Work and Pensions Secretary Liz Kendall when making the decision had come to light and should have been taken into account.
national insurance
Labour’s pre-election manifesto promised that national insurance would not be increased.
The statement said: “Labour will not increase taxes on employees, so we will not increase national insurance, basic, higher or additional income tax rates or VAT.”
But Sir Keir and Chancellor Ms Reeves used uncertainty over whether they meant employer or employee national insurance contributions to defeat the commitment in Labour’s first budget in power.
The pair claim they only promised to freeze employee contributions and instead bought the firm with a 2 per cent increase in employer national insurance contributions.
