The Fort Worth Press - UK politics: Outlook for 2026

USD -
AED 3.673042
AFN 65.000368
ALL 82.925041
AMD 381.210403
ANG 1.790403
AOA 917.000367
ARS 1462.800504
AUD 1.492983
AWG 1.78075
AZN 1.70397
BAM 1.679721
BBD 2.014497
BDT 122.221125
BGN 1.666695
BHD 0.378423
BIF 2963
BMD 1
BND 1.286619
BOB 6.926522
BRL 5.371804
BSD 1.000292
BTN 90.082964
BWP 13.42019
BYN 2.928733
BYR 19600
BZD 2.011569
CAD 1.39175
CDF 2260.000362
CHF 0.800925
CLF 0.022818
CLP 895.130396
CNY 6.97735
CNH 6.976041
COP 3713
CRC 497.352634
CUC 1
CUP 26.5
CVE 95.203894
CZK 20.872604
DJF 177.720393
DKK 6.42138
DOP 63.250393
DZD 130.596829
EGP 47.394835
ERN 15
ETB 155.350392
EUR 0.859504
FJD 2.275104
FKP 0.745654
GBP 0.745879
GEL 2.69504
GGP 0.745654
GHS 10.72504
GIP 0.745654
GMD 74.000355
GNF 8741.000355
GTQ 7.669383
GYD 209.229924
HKD 7.79525
HNL 26.46504
HRK 6.474704
HTG 130.997879
HUF 331.430388
IDR 16842.65
ILS 3.14804
IMP 0.745654
INR 90.26835
IQD 1310
IRR 42125.000158
ISK 126.480386
JEP 0.745654
JMD 158.396029
JOD 0.70904
JPY 157.88404
KES 129.000351
KGS 87.443504
KHR 4030.00035
KMF 424.00035
KPW 900.02684
KRW 1457.330383
KWD 0.30749
KYD 0.833502
KZT 510.950222
LAK 21600.000349
LBP 89537.871821
LKR 309.217081
LRD 180.150382
LSL 16.510381
LTL 2.95274
LVL 0.60489
LYD 5.430381
MAD 9.232504
MDL 16.953447
MGA 4582.503755
MKD 52.894615
MMK 2100.1161
MNT 3559.876367
MOP 8.031502
MRU 38.260379
MUR 46.410378
MVR 15.460378
MWK 1737.000345
MXN 17.978104
MYR 4.093504
MZN 63.903729
NAD 16.503727
NGN 1429.440377
NIO 36.775039
NOK 10.096604
NPR 144.132399
NZD 1.744288
OMR 0.385979
PAB 1.000202
PEN 3.363039
PGK 4.26375
PHP 59.296038
PKR 280.000342
PLN 3.62025
PYG 6619.08688
QAR 3.64125
RON 4.373904
RSD 100.955038
RUB 79.284922
RWF 1455
SAR 3.750336
SBD 8.130216
SCR 13.912744
SDG 601.503676
SEK 9.206704
SGD 1.287038
SHP 0.750259
SLE 24.125038
SLL 20969.503664
SOS 571.503662
SRD 38.191038
STD 20697.981008
STN 21.45
SVC 8.751551
SYP 11059.574895
SZL 16.525038
THB 31.460369
TJS 9.311857
TMT 3.5
TND 2.897504
TOP 2.40776
TRY 42.951304
TTD 6.789108
TWD 31.608304
TZS 2497.503628
UAH 43.141369
UGX 3601.119929
UYU 38.93968
UZS 12125.000334
VES 324.98266
VND 26270
VUV 120.988544
WST 2.784016
XAF 563.360287
XAG 0.012513
XAU 0.000222
XCD 2.70255
XCG 1.802613
XDR 0.700294
XOF 562.503593
XPF 102.950363
YER 238.450363
ZAR 16.48803
ZMK 9001.203584
ZMW 19.378803
ZWL 321.999592
  • SCS

    0.0200

    16.14

    +0.12%

  • RBGPF

    0.0000

    81.57

    0%

  • CMSD

    0.1900

    23.69

    +0.8%

  • BCE

    -0.0100

    23.74

    -0.04%

  • BCC

    5.0200

    83.05

    +6.04%

  • RYCEF

    0.3300

    17.45

    +1.89%

  • RELX

    0.7900

    43.14

    +1.83%

  • NGG

    0.6400

    80.12

    +0.8%

  • RIO

    -3.0600

    81.13

    -3.77%

  • VOD

    -0.3200

    13.5

    -2.37%

  • JRI

    0.0600

    13.8

    +0.43%

  • GSK

    0.1700

    50.39

    +0.34%

  • CMSC

    0.2600

    23.27

    +1.12%

  • AZN

    0.6400

    94.65

    +0.68%

  • BTI

    1.4000

    55.19

    +2.54%

  • BP

    0.1600

    34.29

    +0.47%


UK politics: Outlook for 2026




Barely six months after the landslide general election of late 2024, the new Labour government entered 2025 with high expectations and a hefty parliamentary majority. That optimism quickly gave way to impatience as voters confronted a cost‑of‑living crisis, strained public services and a sense that promises of “change” had yet to translate into tangible improvements. Opinion polls showed unprecedented volatility, with Reform UK and the Greens capitalising on frustration to peel supporters away from both major parties. By late summer the combined backing for “insurgent” parties outstripped that of Labour and the Conservatives, signalling a shift toward multi‑party politics and a deadlock between loosely defined left‑ and right‑leaning blocs.

Domestic politics were rarely short of drama. In January, Economic Secretary to the Treasury Tulip Siddiq resigned following controversy over her financial ties to relatives abroad, and Home Secretary Yvette Cooper announced a nationwide review into grooming gangs. February saw Health Minister Andrew Gwynne dismissed for sending abusive messages, and the government cut international aid to boost defence spending to 2.5 % of GDP by 2027, prompting the resignation of International Development Minister Anneliese Dodds. In March, Reform UK MP Rupert Lowe was suspended after publicly attacking Nigel Farage’s leadership, exposing fissures within the rising populist movement.

April brought a reminder of the state’s willingness to intervene in industry. Parliament was recalled over Easter to fast‑track the Steel Industry (Special Measures) Act, enabling ministers to take control of the Scunthorpe steelworks. The emergency law prevented the closure of Britain’s last blast furnaces, safeguarded thousands of jobs and gave the government powers to direct the board and workforce while a rescue plan was put in place. The episode underscored a new willingness to wield state power to protect “nationally critical” capabilities.

Local elections in May deepened the sense of volatility. Reform UK captured 677 of roughly 1,600 contested council seats, while the Liberal Democrats gained 160 seats and seized control of several county councils. Labour’s majority proved brittle as dozens of backbench MPs publicly opposed proposed cuts to disability benefits. In June the government was forced into a climb‑down over winter fuel payments and faced the emergence of two break‑away movements from Reform UK: Advance UK, led by Ben Habib, and Restore Britain, led by Rupert Lowe.

July delivered a landmark for foreign and domestic policy alike. Prime Minister Keir Starmer hosted German Chancellor Friedrich Merz in London to sign the so‑called Kensington Treaty—an ambitious friendship pact that included plans for a direct high‑speed rail link between London and Berlin and deeper cooperation on energy, security and climate action. The agreement set up a joint taskforce to overcome regulatory barriers and signalled an aspiration to strengthen European connectivity and decarbonise long‑distance travel. The month also saw Conservative leader Kemi Badenoch reshuffle her shadow cabinet, and former Labour leader Jeremy Corbyn teamed up with backbencher Zarah Sultana to launch a new left‑wing party, provisionally titled Your Party.

Political scandals returned in late summer. Housing and homelessness minister Rushanara Ali resigned in August after criticism over a rent hike at a property she owned. In September, Deputy Prime Minister and Labour deputy leader Angela Rayner stepped down after admitting she had underpaid stamp duty on her Hove flat. Her departure forced a sweeping reshuffle: David Lammy became Deputy Prime Minister, Yvette Cooper moved to the Foreign Office and Shabana Mahmood took over as Home Secretary. United States President Donald Trump’s second state visit that month added to the diplomatic circus. 

October’s Caerphilly by‑election delivered a shock when Plaid Cymru overturned a Labour seat for the first time since the Senedd was established in 1999. At Labour’s conference in Liverpool, grassroots dissatisfaction manifested when Lucy Powell defeated Education Secretary Bridget Phillipson to become deputy party leader, signalling demands for a more left‑wing agenda. 

The year’s final months offered no respite. Home Secretary Shabana Mahmood announced that elected police and crime commissioners would be abolished from 2028, while First Minister John Swinney said the Scottish government would issue its first bonds in 2026‑27. In late November, Chancellor Rachel Reeves presented the Autumn Budget, which scrapped the two‑child benefit limit and raised the National Living Wage, but funded some measures through “stealth taxes” such as freezing income tax thresholds. Embarrassment followed when the Office for Budget Responsibility mistakenly published its economic and fiscal outlook online 40 minutes before Reeves delivered her statement, causing market turbulence. The leak triggered an investigation and the resignation of OBR chair Richard Hughes in December. By year’s end, Labour’s poll ratings had plummeted. Reform UK led national surveys, while the Greens approached parity with the Conservatives. Speculation mounted about potential leadership challenges and the likelihood that the May 2026 local and devolved elections could determine the fate of Starmer’s premiership.

Foreign policy and the enduring war in Ukraine
Despite domestic turmoil, the UK sought to reclaim a leadership role abroad. The most significant act was the signing of a century‑long partnership with Ukraine. During his first trip to Kyiv as prime minister in January, Starmer promised that Britain would support Ukraine “beyond this terrible war” and into a future where it was free and thriving. The One Hundred Year Partnership commits the UK to providing at least £3 billion in military assistance annually until 2030/31—and for as long as needed thereafter. It also pledges cooperation on defence production, training, air and missile defence, intelligence sharing and joint innovation. The pact is broad, covering economic recovery, scientific collaboration and cultural ties, and was accompanied by commitments to supply mobile air‑defence systems and 150 artillery barrels. 

The agreement was signed against a backdrop of shifting geopolitics. With the United States under the new Trump administration reluctant to approve additional Ukraine funding and publicly advocating for a negotiated settlement, European nations assumed greater responsibility for security on the continent. The UK and Germany took over leadership of the Ukraine Defence Contact Group, which coordinates military assistance, while London and Paris pushed for a “coalition of the willing” to guarantee any future peace deal. European governments simultaneously expanded sanctions against Russia, agreed to increase defence spending and launched new funding mechanisms to procure equipment directly from industry. Bilateral donations of weapons gave way to initiatives aimed at joint production and financing Ukraine’s defence industry, with the UK and other allies emphasising rapid innovation and resilience.

This alignment with Kyiv reflected the government’s belief that Russia’s invasion threatened European security and the international rules‑based order. Starmer’s visit to Kyiv underscored the immediacy of the threat: during a press conference with President Volodymyr Zelenskyy at the Mariinskyi Palace, a Russian drone buzzed overhead, prompting anti‑aircraft fire. The incident reinforced London’s argument that Ukraine’s defence is inseparable from Europe’s security and that the UK must play a long‑term role in ensuring Ukrainian sovereignty.

Looking ahead to 2026: challenges and choices
The coming year promises to be pivotal. On the domestic front, the May 2026 local and devolved elections will be a referendum on Labour’s first 18 months in office. Polling experts expect Labour to suffer heavy losses across English councils, the Welsh Senedd and the Scottish Parliament. With Reform UK leading national polls and the Greens surging under new leader Zak Polanski, Labour faces pressure from both left and right. The Conservatives, led by Kemi Badenoch, hope to rebuild after their 2024 drubbing, while new parties such as Advance UK, Restore Britain and Your Party could fragment the vote further. A poor showing in May could trigger a leadership challenge against Starmer and Chancellor Rachel Reeves or prompt calls for an early general election. 

Economic headwinds remain severe. Fiscal space is limited, and the government is locked into pledges to keep borrowing within strict limits while funding rising welfare costs, investing in healthcare and increasing defence spending. The NHS will continue to test the government’s ability to deliver: ministers have promised a ten‑year plan centred on prevention, technological innovation and neighbourhood‑based care, yet reforms take time to translate into improved outcomes, and staffing shortages persist. Housing, transport and net‑zero commitments also demand urgent attention, especially as opposition parties champion radically different energy policies.

Internationally, Ukraine will remain at the centre of British foreign policy. The 100‑year partnership binds the UK to provide at least £3 billion annually in military aid and to deepen industrial cooperation with Ukraine. With Washington signalling reduced support and Russia showing no sign of halting its aggression, European nations must fill the vacuum. Britain’s leadership of the Ukraine Defence Contact Group and its role in brokering peace‑keeping guarantees will require sustained diplomatic and financial investment. Maintaining domestic consensus for such assistance in the face of economic hardship will be challenging, yet failure to support Ukraine could embolden an increasingly authoritarian Russia and undermine Europe’s security architecture.

2025 revealed both the fragility and resilience of Britain’s political system. Voters demonstrated that they are willing to abandon traditional allegiances, while ministers discovered that big majorities offer little protection when expectations run high and delivery is difficult. The year ahead will test whether the government can stabilise public services, manage economic constraints, and articulate a compelling vision that counters the insurgent appeal of Reform UK and the Greens. Above all, it will test Britain’s capacity to balance domestic discontent with its moral and strategic commitment to supporting Ukraine’s struggle against Russian aggression.