Sir Keir Starmer has said he is frustrated by the slow pace of change but insisted that people would begin to feel a “sense of hope” next year as the economy turns around.
The prime minister acknowledged in his new year message that “life is still harder than it should be” for many Britons who “long for a bit more money in [their] pockets”.
But he insisted 2026 would be the year that the government’s spending decisions, including on the NHS and in towns and cities, would be felt by the public.

Starmer with University College Hospital London staff, Wes Streeting, the health secretary, and Rachel Reeves, the chancellor, in November
KIRSTY O’CONNOR/NO 10 DOWNING STREET
Starmer is facing a fight for his political future when parliament returns. Cabinet ministers are saying his premiership is unsustainable after a collapse in the polls and Labour is facing a damaging set of local elections, as well as votes in Wales and Scotland in May.
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His hopes of saving his premiership rest on convincing voters and his own MPs that they will be better off.
Starmer said: “In 2026, the choices we’ve made will mean more people will begin to feel positive change in your bills, your communities and your health service. But even more people will feel once again a sense of hope, a belief that things can and will get better, feel that the promise of renewal can become a reality, and my government will make it that reality.
“More police on the streets by March. Energy bills down and the number of new health hubs up in April. More funding for local communities. And with that change, decline will be reversed. That opportunity for you and pride in your community can be restored.
“I share the frustration about the pace of change. The challenges we face were decades in the making, and renewal is not an overnight job, but putting our country back on a stable footing will become our strength.”
The local elections could be damaging for the Conservatives too: Nigel Farage’s Reform UK is expected to make significant gains and Kemi Badenoch, the Tory leader, could face a challenge to her leadership.
Badenoch said in her new year message that the public should not “lose hope” in politics. She said: “Britain is not destined for decline. We are a great country full of talent, humour and strength. Things can change, but only if we have a plan for change.
“Don’t let the politics of grievance tell you that we’re destined to stay the same. Things can change, but you also need to vote for the change you want to see in 2026. “I’m not giving up on our country. And I hope you won’t either!”

Farage said that he “can’t remember the country ever being gloomier”, adding that Reform was “the party of hope” who could bring change. “I know many feel hopeless, but we’re the party offering hope,” he said. “We’re the ones offering change. And 2025 showed you, with the county elections where we comfortably won more seats than any other party, what we are capable of.
“We will then absolutely have a chance of fundamentally changing the whole system of government in Britain. We may well be the last chance this country has to restore some proper values: of family, community and country.”
Farage criticised the education system, Labour and the Conservatives for granting citizenship to Alaa Abd el-Fattah, the British-Egyptian campaigner, despite his “abominable, hateful tweets”, and said Britain was at the “dawn of a cryptocurrency revolution”.
Sir Ed Davey, leader of the Liberal Democrats, said that standing up to President Trump and Elon Musk had been a proud achievement for his party. Davey pledged to change Britain “for the better” in the local elections.
He said: “We can win again in 2026 — in Scotland, Wales and across England. To stop Trump’s America becoming Farage’s Britain. And change our country for the better. So from all of us at the Liberal Democrats: I hope you have a happy and hopeful new year. Let’s make it a good one.”