The Fort Worth Press - UK politics: Outlook for 2026

USD -
AED 3.672504
AFN 63.000368
ALL 81.850403
AMD 368.180403
ANG 1.79046
AOA 918.000367
ARS 1411.841886
AUD 1.388696
AWG 1.8
AZN 1.70397
BAM 1.679981
BBD 2.014233
BDT 122.76083
BGN 1.66992
BHD 0.377275
BIF 2976
BMD 1
BND 1.278067
BOB 6.910443
BRL 5.037104
BSD 1.000073
BTN 94.959542
BWP 13.418887
BYN 2.740298
BYR 19600
BZD 2.011459
CAD 1.38005
CDF 2272.000362
CHF 0.781119
CLF 0.022615
CLP 890.050396
CNY 6.76635
CNH 6.764365
COP 3693.14
CRC 452.064266
CUC 1
CUP 26.5
CVE 94.87504
CZK 20.824204
DJF 177.720393
DKK 6.41042
DOP 58.340393
DZD 132.780279
EGP 52.325831
ERN 15
ETB 158.000358
EUR 0.857704
FJD 2.221804
FKP 0.742087
GBP 0.743356
GEL 2.670391
GGP 0.742087
GHS 11.74039
GIP 0.742087
GMD 72.503851
GNF 8780.000355
GTQ 7.628513
GYD 209.220224
HKD 7.83695
HNL 26.570388
HRK 6.460604
HTG 130.96772
HUF 303.492504
IDR 17823.65
ILS 2.80215
IMP 0.742087
INR 95.010504
IQD 1310
IRR 1351050.000352
ISK 122.960386
JEP 0.742087
JMD 157.513861
JOD 0.70904
JPY 159.30904
KES 129.410385
KGS 87.450384
KHR 4010.00035
KMF 422.00035
KPW 899.855249
KRW 1507.420383
KWD 0.30944
KYD 0.833462
KZT 487.321548
LAK 21952.503779
LBP 89550.000349
LKR 330.034874
LRD 183.125039
LSL 16.240381
LTL 2.95274
LVL 0.60489
LYD 6.350381
MAD 9.18375
MDL 17.306602
MGA 4190.000347
MKD 52.848875
MMK 2100.044704
MNT 3580.365831
MOP 8.070537
MRU 40.000346
MUR 47.370378
MVR 15.403739
MWK 1737.000345
MXN 17.354804
MYR 3.970504
MZN 63.905039
NAD 16.240377
NGN 1371.703725
NIO 36.570377
NOK 9.253504
NPR 151.935268
NZD 1.671822
OMR 0.385278
PAB 1.000103
PEN 3.399504
PGK 4.355039
PHP 61.474038
PKR 278.550374
PLN 3.62895
PYG 6017.110756
QAR 3.641038
RON 4.504104
RSD 100.681038
RUB 71.146838
RWF 1462.5
SAR 3.772303
SBD 8.03246
SCR 13.536038
SDG 600.503676
SEK 9.255045
SGD 1.276804
SHP 0.746601
SLE 24.603667
SLL 20969.502105
SOS 571.503662
SRD 37.170504
STD 20697.981008
STN 21.4
SVC 8.751074
SYP 110.532098
SZL 16.240369
THB 32.575038
TJS 9.231047
TMT 3.5
TND 2.894038
TOP 2.40776
TRY 45.852504
TTD 6.793623
TWD 31.426804
TZS 2629.583038
UAH 44.293077
UGX 3769.922222
UYU 40.112866
UZS 12022.503617
VES 548.68505
VND 26312.5
VUV 118.055972
WST 2.715197
XAF 563.44981
XAG 0.013284
XAU 0.00022
XCD 2.70255
XCG 1.802416
XDR 0.699507
XOF 562.503593
XPF 102.603591
YER 238.603589
ZAR 16.29669
ZMK 9001.203584
ZMW 18.382896
ZWL 321.999592
  • CMSC

    -0.1000

    22.74

    -0.44%

  • CMSD

    0.0400

    22.93

    +0.17%

  • AZN

    0.3400

    185.67

    +0.18%

  • RIO

    -0.0800

    106.39

    -0.08%

  • RELX

    -0.3100

    32.79

    -0.95%

  • RBGPF

    -0.0100

    63.54

    -0.02%

  • RYCEF

    0.7000

    18

    +3.89%

  • GSK

    -0.7000

    50.54

    -1.39%

  • NGG

    -1.1562

    81.53

    -1.42%

  • BCE

    0.2000

    25.11

    +0.8%

  • VOD

    0.0300

    14.96

    +0.2%

  • JRI

    0.0600

    12.92

    +0.46%

  • BCC

    -0.6300

    69.72

    -0.9%

  • BTI

    -1.1300

    61.79

    -1.83%

  • BP

    0.2800

    41.87

    +0.67%


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.