FTI Consulting UK Public Affairs Snapshot: Labour Party Conference 2025: Defiant Renewal

Labour Party conference opened against a challenging backdrop for the Prime Minister, Sir Keir Starmer, following a turbulent period marked by the dismissal of Peter Mandelson as British Ambassador to the United States and the departure of the party’s deputy leader, Angela Rayner, amid a tax scandal. Goodwill among the party membership has been wearing thin, and while there is support within the party for a number of Labour’s individual policies, they are impatient for the delivery the country has been promised.

Indeed, recent YouGov polling indicates a majority – 60% – of Labour Party members generally view Starmer and his Chancellor, Rachel Reeves, as having carried out a good job so far. But a notable minority of 33% believe they have performed badly. Polling from the general public is considerably worse for the government, with one September Ipsos poll grabbing headlines in marking the Prime Minister as the least popular on record.

With this in mind, Starmer sought to explain the choices facing the country and set out his vision. Taking the fight to Reform, he emphasised that Britain faces a decision between decency or division. But in doing so, he acknowledged that the path forward will not be “cost-free”, nor easy – an admission that optimism must be balanced against the hard realities of the UK’s public finances.

Visionary words were accompanied with a selection of policy announcements. As trailed in the press the week prior, the government will be pursuing a new Digital ID programme, mandatory for the right to work. The plans, long championed by former Labour Prime Minister Tony Blair, have raised concern from civil liberty groups, and questions remain around the government’s plan for its implementation.

Wider policies announced included adjustments to “indefinite leave to remain” status, led by the new Home Secretary Shabana Mahmood, and the replacement of a target for 50% of young people attending university with more apprenticeships – both of which were clearly geared towards stemming the loss of votes to Reform. These were accompanied by new plans for a new online NHS service to boost appointments and reduce waiting times.

The Chancellor offered less on future tax policy ahead of the upcoming budget, though her remark that the Treasury will “have to respond” to any OBR productivity downgrades offered a strong indication of the path the government is likely to take. Also of note is the intention, floated earlier in the week, to dial down the requirement for the OBR to set out two fiscal forecasts a year.

There was limited opportunity for contentious motions on the conference floors, although a union-led motion acknowledging a UN finding that Israel is committing genocide in Gaza and urging the British government to act to prevent it was backed, with significant support from affiliates.

In another set-piece moment, ballots for the deputy leadership election will be sent to party members in the coming days. This is not expected to cause high drama, as the only two candidates to secure enough nominations from MPs to go through to the final stage in the competition are both on the moderate, mainstream wing of the party, albeit with Lucy Powell on the soft left and No 10’s candidate Bridget Phillipson a little more towards the right.

Regardless of the result, Starmer will be glad to move on from personnel changes, particularly following an extensive reshuffle, and shift the focus of the Labour Party in the public eye away from internal division and towards a government committed to delivery. In that vein, Andy Burnham’s public statement that rumours of a leadership bid were “overwritten” and “inaccurate” should also please No 10.

Ministerial speeches throughout sought to frame Reform, rather than the Conservatives, as Labour’s principal political adversary. References to the Conservative Party were somewhat sparse, while Nigel Farage and his party were explicitly cast as the “single greatest threat to our way of life and living standards of working people” in the Chancellor’s address on Monday. Starmer also questioned the extent of Farage’s patriotism, framing him as the “enemy of renewal” – a sign of the robust, personal tone Labour leadership is using to attack Reform.

With national polling continuing to indicate robust support for what was once a fringe movement – despite its modest parliamentary presence of just five MPs – Reform’s leadership continues to exert pressure on a Labour government increasingly struggling to assert control over the political narrative.

Although a general election remains distant, the contests in Scotland, Wales and local authorities in May 2026 will provide an important barometer of public sentiment towards the Labour government. Party strategists are therefore working intensely behind the scenes to craft a compelling response to combat Reform’s positioning, with particular focus on the politically charged issue of illegal immigration.

Liverpool attracted strong business attendance, with a packed fringe programme of events, roundtables and receptions drawing healthy participation from across industry. Companies sought to build relationships with new ministers, engage with party members and signal alignment with the government’s policy priorities.

Feedback from Business Day was generally positive. Tickets were strictly limited to 200 attendees, versus the headcount of 500 people from the previous year, in order to create more opportunities for engagement with ministers for those attending. This featured a morning of roundtable discussions and Q&As with key cabinet officials Business leaders were complimentary of the Chancellor’s session in particular, and saw her as having performed strongly in her off-script responses.

Notably, there was an expectation from the party that all ministers should be present at a minimum of one of three key points during the day, so most senior attendees received a strong degree of facetime with ministers. This was a certain improvement from the previous year, and a reflection of the government’s understanding of the need to engage with key players across the economy. Delegates may wish for similar efforts to be put into the catering next year, too.

Against the backdrop of a challenging fiscal outlook, ministers, in their discussions with industry, used the occasion to provide reassurance on the government’s commitment to driving growth. The Chancellor’s pledge to silence the “nagging voices of decline” was strategically designed to project confidence. But her words are unlikely to dispel the prevailing sense of caution across industry, which is bracing for potential tax rises in the autumn.

The success of the Prime Minister’s “phase two” of government, centred on the mantra of delivery for working people, now hinges on his ability to demonstrate measurable, tangible progress across core policy areas, while maintaining party discipline. Economic growth will be a critical piece of the puzzle here. But while Starmer’s conference speech appeared to reinvigorate conference attendees with a renewed vision for a Labour-led Britain, the greater test lies in whether he can persuade the wider public of its credibility.