Not a month has passed since the new Labour government came to power in the UK on 5 July 2024, in a landslide victory, heralding a change after 14 years of Conservative rule. It is agreed that it is impractical to make any judgment on a government’s performance within such a short period in office. During the election, the ordinary citizen was overwhelmed by all the promises, the new ways of working, the freshness in vision, and a change in style that Labour offered, which was a marked contrast to the infighting in the Sunak government.
The wishes and actions proposed by the new government were many, some long overdue, with many hoping to change Britain’s green belt, building 1.5 million homes for much-needed social housing, in contrast to the previous planning permission rules. These guidelines were, in some sense, written in stone for centuries, later codified. Additionally, there was an obvious change in mindset of Labour to free the working class from years of union bashing, with prominence given to the millennial generation in their aspirations.
The appointment of Angela Rayner (Deputy Prime Minister), Rachel Reeves (Chancellor), and Shabana Mahmood (a Muslim MP, as Lord High Chancellor), along with 11 other women—the highest number of women in Britain’s Cabinet history—are not accidental but planned.
The Vision and the Reality
For many of my readers who may not know Britain, or who may have visited but not lived with the Brits for long, it understandably presents a new perception. What is said and what really happens are two different things. Britain is very conservative in outlook, but all the time, they want to change this outreach. Checks and balances have been put in place to prevent new administrations from challenging the accepted way of doing things. This can hardly change, even with a change of government. Custom and practice are ingrained in life in Britain.
Governments of different hues come and go, but the custodians of the land, the permanent officers, the Civil Service, are here to stay forever. No one believes in the power wielded by civil servants in Britain, but it is a reality. There are two things that civil servants excel in. They are said to be unbiased and have to follow tradition as a matter of their responsibility.
We witnessed it in comedy in the TV series, “Yes Minister.” However, the Chancellor of the Exchequer, Rachel Reeves, is an up-and-coming go-getter who made her name working as a researcher in the Bank of England. She is determined to change the existing Treasury culture but is constrained.
What Are the Unwritten Constraints?
The Chancellor of the Exchequer said there was a black hole of 22 million pounds left to her government by the Conservatives, which she had to plug. She said she would have to find ways and means to cover this shortfall. She would save almost 3 billion by ending the Winter Fuel Payments—worth between 300 and 600 pounds for those not on pension credit.
She has been warned by her civil servants that it will not be possible because of the ageing computer system. The Benefits Payments system comprises 12-plus aged computer systems and thousands of admin staff. It cannot nuance and do fine margins. Besides, there seem to be blocks in the system. This precaution will affect thousands—in fact, 2 million pensioners and would-be beneficiaries.
So, with all the will of the Labour government, the system will prevent it from doing what it wants. It will be constrained by the system and will have to accommodate its plan to fit the system. Labour may be forced to do a U-turn on its plan. This is the reality of today’s government.
