Starmer has delivered some key wins for the UK recently

After a year in office, U.K. Prime Minister Keir Starmer has chalked up several high-profile foreign policy victories, including recently finalizing trade agreements with the United States, India, and the European Union. These deals are expected to stimulate the economy and gradually raise wages across the U.K.But domestically, his political fortunes are heading in the opposite direction.

Approval Ratings Hit a New Low

A recent YouGov poll released in mid-May paints a stark picture of public sentiment: 69% of respondents now view Starmer unfavorably — a record low for his tenure — while only 23% hold a positive view.

What’s more concerning for the Labour leader is the shift within his own party's base. Half of Labour supporters now express dissatisfaction with Starmer, a 17-point increase in disapproval since mid-April. Meanwhile, positive perceptions among Labour voters have dropped from 62% to just 45% in a single month.

This disconnect raises a critical question: why is public opinion faltering even as the economic outlook begins to brighten?

Trade Triumphs Amid Economic Anxiety

While the government has been touting its recent trade achievements, British households are still grappling with rising costs and economic strain.

In April, annual inflation spiked unexpectedly to 3.5%, up from 2.6% the previous month, according to the Office for National Statistics. Energy costs climbed 6.7% year-on-year, while water and sewerage charges surged an eye-popping 26.1% — the steepest monthly jump since 1988.

Adding to the pressure are recent tax increases introduced in the Autumn Budget, which many economists have criticized as stifling growth. These include new immigration limits affecting key sectors, minimum wage hikes, and labor reforms that place strain on small and mid-sized enterprises.

As a result, long-term benefits promised by new trade deals offer little immediate relief to voters and business owners already stretched thin.

Kallum Pickering, chief U.K. economist at Peel Hunt, summed it up bluntly on CNBC: “Domestically, this government deserves a C-minus. The policies so far have mostly discouraged growth — and that’s spooked bond markets.”

He did, however, give credit to Starmer’s handling of international affairs: “Trade-wise, they're doing reasonably well.”

Mixed Signals from Business and Markets

Despite public unease, corporate leaders have praised the government’s economic direction. Barclays CEO C.S. Venkatakrishnan said the government was “absolutely on track,” noting its success in rekindling trade and diplomatic ties.

“There’s still consumer resilience,” he added, pointing out that households have managed finances prudently even amid inflation. “But people are anxious — about energy bills, about broader inflation. Growth is the only long-term solution, and that’s where the government is focusing.”

A Matter of Personality and Perception

Still, a nagging issue for Starmer may be less about policy and more about personality.

His reserved and methodical style — seen by some as a refreshing contrast to more flamboyant figures like Nigel Farage or Boris Johnson — is viewed by others as uninspiring and lacking the charisma needed to rally public support.

“Starmer is competent — that’s clear — but he’s also dull and lacks presence,” said Bill Blain, strategist and founder of Wind Shift Capital. “Farage and Johnson had personality in spades. Starmer doesn’t.”

Blain also criticized the Labour frontbench, describing many of Starmer’s cabinet members as out of their depth. Shadow Chancellor Rachel Reeves, he argued, appears risk-averse and fails to instill public confidence.

Perhaps most damaging, Blain believes the Labour narrative on fiscal responsibility — intended to project discipline — has alienated core voters.

“Labour frames it as responsible governance,” he said, “but many see it as cold and out of touch.”