The UK government has set out what it describes as early evidence of progress on its economic and domestic agenda, pointing to falling inflation, lower net migration, and stronger-than-
expected growth while pledging further measures to ease cost-of-living pressures for households.
Prime Minister Keir Starmer said the government’s “plan is working,” citing recent indicators that ministers say show improving economic stability alongside reforms to public services and border policy.
Official figures highlighted by the government show net migration has fallen to its lowest level since 2021, down by nearly three quarters from recent peaks. Inflation has eased more quickly than forecast to 2.8%, while the UK economy grew by 0.6% in the first quarter, making it the fastest-growing among the G7 economies.
The government also pointed to wider performance indicators, including a fall in homicide rates to their lowest level since the 1970s, a 10% reduction in knife crime, and the removal of more than 63,000 knives from the streets.
In health and education, ministers said NHS waiting lists have dropped to a three-and-a-half-year low, with what they described as the strongest monthly improvement in 17 years. They also reported the addition of 4,000 teachers across secondary, special and further education settings.
Alongside these figures, the government announced a set of summer cost-of-living initiatives branded the “Great British Summer Savings,” aimed at helping families manage expenses during the holiday period. Measures include VAT reductions in hospitality, temporary free bus travel for children aged 5 to 15 in England in August, and targeted tariff cuts on everyday goods.
Ministers said these policies are intended to ease financial pressure while supporting high streets and local businesses.
Economic data cited by the government also shows consecutive quarterly GDP growth since 2024, alongside upgraded forecasts from the International Monetary Fund, which has raised its outlook for UK growth prospects.
Trade and business policy developments were also highlighted, including a new trade agreement with the Gulf Cooperation Council—described by ministers as a first-of-its-kind deal for a G7 country—and proposed legislation aimed at strengthening protections for small businesses against late payments.
On labour market policy, the government pointed to increases in the National Living Wage, expanded childcare provision offering up to 30 funded hours, and new renters’ rights legislation affecting an estimated 11 million tenants.
Security and immigration policy changes were also referenced, including the closure of more than half of asylum hotels and continued enforcement action targeting criminal networks linked to irregular migration.
Internally, ministers said the government is restructuring delivery mechanisms across departments, introducing dedicated delivery teams and linking senior civil service pay more closely to performance outcomes. Officials described the changes as a significant reform of the senior civil service pay framework.
The government says the combined package reflects a broader strategy to “rebuild economic stability” while delivering immediate relief to households and longer-term structural reform. Photo by [2], Wikimedia commons.
