This government needs to reverse at least three decades of financial woes, and it needs to show progress before its plan gets Trumped

• Michael Jacobs is professor of political economy at the University of Sheffield

Economically speaking, it has not been a happy new year for Keir Starmer and Rachel Reeves. The Office for National Statistics has revised down the latest quarterly growth figures to zero. The Confederation of British Industry reports its members are planning to cut hiring and output in the first three months of 2025. And the Bank of England has held back from another interest rate cut, forecasting higher inflation and stagnant growth in the coming year.

Yet these are all very short-term indicators. In recent years, the need for governments to focus on immediate crises (Brexit, Covid, inflation, Liz Truss) has allowed us to forget that longer-term economic policies are also possible. But look behind the headlines, and it’s clear that Labour is trying to address some of Britain’s deep economic problems.

Michael Jacobs is professor of political economy at the University of Sheffield and a visiting senior fellow at the thinktank ODI Global