Labour planning immigration crackdown this week after election defeat by Reform

LONDON May 6: Prime Minister Sir Keir Starmer is preparing a new immigration crackdown and banking on an interest rate cut this week to counter growing pressure from Reform UK, after the right-wing party’s strong performance in last week’s local elections.

Labour MPs are urging Downing Street to take the threat from Nigel Farage’s party seriously, after it outperformed other challengers across parts of England. While Downing Street officials say Starmer is aware of the political risk posed by Reform, they insist there are no plans for policy U-turns, despite backlash over recent decisions such as cuts to winter fuel payments and changes to sickness benefits.

According to insiders, Labour will focus on three key issues to win back public support: controlling immigration, improving the NHS, and boosting living standards.

A potential interest rate cut by the Bank of England on Thursday would be used by ministers to highlight what they say is restored economic stability under Labour’s leadership. However, the Government is expected to reject calls – including from Unison’s general secretary – to loosen borrowing rules for increased public spending, citing the need to maintain credibility with financial markets.

The next major policy announcement is expected to be an Immigration White Paper, likely to be published next week. It will set out plans to reduce both legal migration and the number of asylum seekers entering the UK illegally, as Labour aims to assert control over the borders amid growing public concern.

Labour insiders are increasingly focused on the political challenge from Reform UK. Health Secretary Wes Streeting, speaking to Sky News, said: “I don’t know whether it will be Reform or the Conservatives that emerge as the main threat… like Alien versus Predator, I don’t really want either one to win.”

A Labour backbencher added: “We have to start taking them more seriously,” while a local councillor said: “On the ground, it’s much tougher than Westminster realises. Reform can say what they like, and we’re left defending the tough decisions.”

Focus groups held in Runcorn and Helsby – where Reform UK recently won a by-election in a traditionally Labour seat – revealed voter frustration over the cost of living and immigration. One voter, a nurse named Matt, said: “I’m traditionally Labour… but I voted Reform. I just hope it’s a bit of a kick up the bum that sparks change.”

Meanwhile, Labour grandee David Blunkett has warned that poorly handled net zero policies could risk voter backlash if they drive up energy costs. Writing in The Telegraph, he said: “Getting energy prices down quickly is a political imperative if the necessary changes aren’t to become electorally toxic.”

Streeting also acknowledged the political costs of Labour’s fiscal policies, telling GB News: “I’m not going to insult voters by pretending winter fuel allowance hasn’t come up – it has. Pretty much everything the Chancellor has done to raise money for the NHS has faced criticism. We knew those choices could be unpopular.”