‘Govern in growth, campaign in costs’ - 5654 & Labour Growth Group’s latest research examines how voters really feel about growth
New research from Labour Growth Group shows that Labour’s electoral chances will be defined by tackling bills and key costs voters say they look to - such as socialising (55%) and holidays (53%) and car insurance (52%)
Reform UK voters report being most financially insecure and half say they are not confident they will be able to afford a yearly holiday
The UK’s first Financial Security Index - a landmark snapshot of how voters are really experiencing the economy — and what costs are cutting deepest - was launched today. The new research project from the over 100 strong Labour Growth Group of MPs and independent corporate affairs consultancy 5654 & Company, finds that while growth remains vital to the national interest, voters across the country — and especially those Labour must win from Reform UK — feel increasingly detached from the political conversation about the economy.
The findings suggest that while economic growth is the route to the changes voters see as top priorities - like decreased cost of living (50%) and growing wages (37%) — Labour must campaign more directly on the everyday costs voters notice most — like food, energy, holidays, and socialising — if it is to win key battlegrounds at the next election.
This research also comes as 1st April brought increases in bills across a number of household basics, including water, electricity and council tax. The Index’s findings suggest Labour need to bear down on the costs the public are most sensitive to, including energy bills (67%), socialising (55%), holidays (53%) and car insurance (52%).
As the Government launches its local election campaign, the research shows that Labour will be best placed to shape its message around cost of living and living standards, both of which voters report much higher understanding of than economic growth. The data shows that voters are far more likely to understand the economy through the lens of cost of living (78%) and living standards (71%) than economic growth (53%). There is evidence though that messaging demonstrating how the Government has helped specifically in cutting the cost of trips to the pub or holidays abroad will be well received by key groups.
The data reveals some stark findings - such as 30% of the public said they were unlikely to be able to afford a holiday this year - equivalent to tens of millions of people across the UK - and rising to 50% for Reform UK voters. Meanwhile 16% said they were using Buy Now Pay Later services to pay for everyday products as a result of the cost-of-living squeeze.
The project is the brainchild of Labour Growth Group Co-Chair and former political strategist Chris Curtis and co-founder 5654 & Company and former Tory Special Advisor James Starkie. Both believe that there is a need for more granular research on voters' views of the economy, rooted in their everyday lives rather than dry language and vague stats. Starkie draws on his experience in Government of seeing endless initiatives and campaigns that failed to consider the public’s genuine views of issues. Curtis sees the research as key to targeting the Labour Growth Group’s advocacy to Government on policies that will demonstrate to voters that Labour is making them better off.
Chris Curtis MP, Co-Chair of Labour Growth Group
“Political science is pretty clear that when people feel financially better off, they stick with the government that made it happen. That’s why Labour’s number one mission needs to be growing the economy, because we know that’s the only way to drive prosperity. But what this research shows is that we need to ‘govern in growth, campaign in costs’.
“Big-picture economic growth is great, but voters don’t feel abstract GDP figures in their wallets; they feel it when wages rise faster than bills. That’s why we have to focus on the costs that hit hardest, like energy and groceries, but also on the little things that make life enjoyable, like a holiday or a good meal out. At the end of the day, people don’t vote based on economic theory; they vote based on whether life actually feels easier, and we need to be the party that delivers that.”
James Starkie, Partner at 5654 & Company and former Special Advisor
“Too often in Westminster terms are used that mean little to the public, and there is a danger with this happening when politicians talk about growth. Growth is not the key metric the public will judge the government on, it is the cost of living. Specifically the impact on them and the lives of the people around them. For both government and business this means that they must talk about the issues and costs they face and how what they are doing will improve their lives.
With a sceptical public, talk is cheap and it will be delivery that the government is judged on. Will people feel better off at the next election? Is life a bit more adorable? This is consistent across various voter groups and particularly prevalent with Reform voters. Answering these questions will go some way to predicting the outcome of the next general election. It’s no longer just the economy, stupid, it’s whether people feel that in their pockets.”
Media contacts:
James Starkie – james.starkie@5654.co.uk, +44 7538 602173
Mark McVitie – mark@labourgrowth.co.uk, + 44 7963 230945
NOTE TO EDITORS
Chris Curtis MP is available for broadcast interviews – please contact Mark McVitie with any requests.
The Labour Growth Group is a group of over 100 Labour MPs committed to tearing down the barriers to growth. We believe that many of the barriers to unleashing a new era of growth in the United Kingdom are political and we exist to confront those barriers.
We push Government to be as bold and radical as possible in pursuing economic growth and rising living standards. We engage with fresh thinking, discuss big questions, and push practical reforms that can unlock potential and put money in the pockets of working people across the UK.
5654 & Company was founded in 2020 to help companies earn reputation and support. Our experienced consultancy teams work with clients to shape opinion across their audiences by communicating with evidence and emotion. 5654 works with some of the world’s best-known companies and brands.