Starmer’s Shaky Start

2024 managed to keep the world on its toes when it came to politics. Elections and political turmoil were rife, with the election Supercycle rippling across the world. In the UK, we welcomed Mr Starmer into Number 10 with an overwhelming majority. Yet, his premiership has been fraught with challenges—from demanding the return of "sausages" rather than hostages to his recent expenses scandal.

Since coming into office, Labour’s approval rating has consistently slipped, and over half of Britons currently disapprove of Starmer as Prime Minister. However, it’s worth noting that Starmer is still early in his leadership, leaving ample time to address these challenges and shape his trajectory.

SOURCE: IPSOS (2024)

 Many waited with bated breath for Reeves to deliver what was anticipated to be a "painful" budget. While the general consensus was that "it could have been worse," changes to capital gains, business property relief, and inheritance tax have already proven to be a headache for some advisers. Reeves may have avoided directly increasing personal taxes, but the freezing of various tax rate bands continues the tradition of fiscal drag for the average household. Though it is still early days, some pundits predict that further tax rises are likely in the near future.

 From a personal finance perspective, many felt the impact, but businesses may have been hit the hardest. In a snap poll by the Institute of Directors, 67% of respondents expressed a negative view of the Budget. The combination of an increase in employer National Insurance to 15% and a reduction in the employment allowance threshold presents an expensive challenge that could dampen business confidence going forward. The true extent of the Budget’s fallout won’t be clear until the dust settles; for now, we’ll have to wait and see what Reeves has planned for 2025.

Politics Further Afield

It wasn’t just the UK heading to the polls this year, with roughly 1.5 billion people voting in various elections. A few highlights include Mexico nominating its first-ever female president, Claudia Sheinbaum; Putin claiming a “landslide victory” following the mysterious death of his rival Alexei Navalny; Trump making a return; and Modi retaining his position as Indian Prime Minister, albeit losing his parliamentary majority.

 Perhaps one of the most shocking events in this year’s political saga occurred in the final weeks leading up to Christmas. When political unrest in the Korean peninsula is mentioned, many would assume Kim Jong Un was behind it; however, South Korea’s President Yoon Suk Yeol has been the one making international headlines with his recent ill-judged decisions.

In December, Yoon declared martial law, throwing the country into chaos and sparking widespread protests from civilians. As shocking as this was, it proved incredibly short-lived, with South Korea’s parliament voting to overturn martial law within hours. Days later, the saga concluded with Yoon being impeached and stripped of his presidential powers.