British Prime Minister Keir Starmer is facing mounting public dissatisfaction as economic concerns deepen amid an ongoing cost-of-living crisis. Despite securing Labour’s largest parliamentary majority since 1997 in the 2024 election after 14 years of Conservative rule, the party’s current polling has fallen to 17%, calling Starmer’s leadership into question less than two years into his tenure.

The prime minister’s struggle to address inflation and rising expenses has contributed to widespread frustration among British households, with many expecting improvements that have yet to materialize. Neil Bellamy, consumer insights director at GfK, which has tracked British sentiment since 1974, noted that people’s elevated hopes have given way to disappointment, fueling the prevailing negativity.

Starmer’s challenges echo those faced by other European leaders. French President Emmanuel Macron and German opposition leader Friedrich Merz are also contending with low approval ratings amid economic unease. Consumer confidence in these countries has dropped to nearly three-year lows since the outbreak of the Iran conflict in late February. Data from the Organisation for Economic Co-operation and Development (OECD) indicates that consumer sentiment has fallen more sharply in Britain than in other Group of Seven (G7) nations since Starmer assumed office. Polling from YouGov also reflects a shift in public priorities, with economic issues overtaking immigration as the primary concern for Britons by the end of last year.

The surge in inflation—exceeding 11% following Russia’s invasion of Ukraine in 2022—exacerbated financial pressures, coinciding with market instability during Liz Truss’s brief premiership. The recent escalation of the Iran conflict has driven oil prices nearly 50% higher, renewing cost pressures. While wage growth has been relatively robust since the COVID-19 pandemic, it has not kept pace with inflation, resulting in a 0.4% decline in real household after-tax income compared to late 2019.

Stephen Millard, deputy director at the National Institute of Economic and Social Research, described the cost-of-living crisis as “still very much fresh in the minds of people,” highlighting rising inflation at an inopportune time. Pantheon Macroeconomics chief economist Rob Wood observed that Britain “does stand out for its inflation concerns.” Inflation has surpassed the Bank of England’s 2% target in all but four months over the past five years, leading the central bank to set interest rates more than 1.5 percentage points above those of the European Central Bank. This disparity has contributed to higher mortgage repayment costs for Britons.

Price increases have been particularly pronounced in essential and visible sectors such as food, fuel, and hospitality, with food prices now more than 33% higher than at the start of 2022. Bellamy highlighted the impact on everyday essentials, underscoring the strain on household budgets.

In response, Starmer delayed a planned increase in fuel tax, and Chancellor Rachel Reeves has shifted certain environmental levies from energy bills to general taxation. Reeves also announced various targeted relief measures, including free summer bus travel for schoolchildren and reduced tariffs on imported nuts.

Underlying the immediate crisis are longstanding debates over Britain’s broader economic challenges, which include austerity policies following the 2008 global financial crisis, complications related to Brexit, increasing taxation, and persistent regional inequalities. These issues have been brought to prominence by figures such as Greater Manchester Mayor Andy Burnham, a notable internal critic within Labour and potential challenger to Starmer’s leadership.