Prime Minister Andy Burnham has had a 'decent start', but this early success has been 'largely ‘vibes based’', according to Anand Menon and Ruth Curtice of the Resolution Foundation. Their latest report, 'Policy Landscape 2026', highlights key policy challenges confronting the UK.
To be credible, the Budget and a ten-year plan, both expected this Autumn, will need to detail how the Government will navigate significant trade-offs. Challenges include sluggish growth, with GDP per person broadly at 2019 levels, a weakening labour market, and a 'parlous fiscal situation' exacerbated by recent bond market turmoil.
Public services are also in a poor state, with the criminal justice system facing an 'interlinked crisis' across prisons, probation, and courts. There is a Crown Court backlog of over 80,000 cases and a magistrates’ court backlog exceeding 370,000. Additionally, only 1,970 council houses were built in 2025, contrasting with the Prime Minister's pledge for the largest council house-building programme since the Second World War.
The report also notes the need to fund pre-existing pledges, such as defence spending, and questions around providing greater cost of living support. The Prime Minister's proposed 'complete rethink of the education system', involving technical pathways for young people from age 14 starting September 2028, also raises questions about its interaction with previous reforms.