Once celebrated for its promises of political competence and economic stability, the Labour administration is now grappling with rising concerns over policy reversals, internal dissent, and a lack of strategic direction.

by Xinhua Writer Zheng Bofei

LONDON, July 4 (Xinhua) -- When British Chancellor Rachel Reeves wiped away tears in the House of Commons during Prime Minister's Questions on Wednesday, the emotional moment quickly went viral, symbolising the growing internal and public pressures facing the Labour government one year into its historic majority.

Once celebrated for its promises of political competence and economic stability, the Labour administration is now grappling with rising concerns over policy reversals, internal dissent, and a lack of strategic direction.

The emotional breakdown followed intense internal divisions over a controversial welfare reform bill, a flagship policy that the government was forced to scale back in the face of mounting backbench opposition. According to The Guardian's John Crace, "Rachel Reeves breaking down in tears... her face lined with misery as [Prime Minister] Keir Starmer failed to guarantee she would still be in her job at the next election" became the defining image of Labour's first year in office.

In March 2025, amid worsening fiscal forecasts, Reeves announced sweeping cuts to disability benefits, sparking a backlash from Labour MPs. By late June, the government had retreated, abandoning most of the proposed savings in the face of internal revolt. The reversal has created a fresh 5 billion pounds (6.8 billion U.S. dollars) hole in the Chancellor's budget.

Reeves has built her fiscal strategy around tight budget discipline and cautious borrowing, aiming to maintain financial market confidence. But this approach has left little room to manoeuvre. "Reeves has made big fiscal choices but left herself little room for manoeuvre," said Gemma Tetlow, chief economist at the Institute for Government, warning that the Chancellor is now "at the mercy of events."

The government's troubled handling of the 2024 winter fuel allowance reform was an early warning. Political scientist Karl Pike of Queen Mary University, and a former adviser to Home Secretary Yvette Cooper, said that many experts had warned against the cuts. "In some instances, these cuts that they've U-turned on made things worse," Pike noted. "And that's why I think the political risk we spoke about a year ago is even worse now."

The Labour government's repeated U-turns have taken a significant political toll. "The U-turns and the lack of political momentum are quite significant, I think, for people inside the Labour Party," Pike added.

While Reeves's multi-year spending review in June delivered long-term clarity for departments, with increased funding for defense, the NHS, and net-zero infrastructure, policy experts say these moves have failed to build public confidence. Analysts at the Institute for Government argue that many announcements appear reactive and lack a coherent strategic narrative.

Political scientist Tim Bale of Queen Mary University said Starmer may have overestimated his grip on the party. "What people want to see is someone with a strong sense of direction and a story about where the government is going - and that clearly is not something which he is very good at," Bale said.

Public patience is wearing thin. Pike warned that voters are increasingly demanding tangible results, and quickly.

The rise of Nigel Farage's Reform UK party may appear threatening, but Bale noted that Labour's real losses are to other progressive parties on the left. Underscoring that shift, former Labour leader Jeremy Corbyn announced on Friday via social media platform X that he would join former Labour MP Zarah Sultana in launching a new political party.

What began as a year of optimism is now overshadowed by emotional strain and political disarray. Unless Labour can regain control of its narrative and restore internal unity, experts warn that a second year in office may bring even deeper crises.