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As Rishi Sunak was winding up his manifesto launch at metaphor-heavy Silverstone race track, the scale of the prime minister’s task in the remainder of the election campaign was becoming clear.

According to the exclusive Sky News-YouGov poll, Sunak needs to go through the gears at once or he’s in danger of dropping to the bottom step of the podium.

He was speaking hours before it emerged voting intention for the Conservatives had dropped to the joint lowest in this parliament – 18% – now putting Sunak’s party just one point ahead of Nigel Farage’s Reform UK on 17%, tantalisingly close to a crossover.

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A full third of 2019 Tory voters – the cohort that endorsed Boris Johnson last time – now say they will switch to Reform UK, while the proportion who think Sunak will be a good prime minister is down two points – to 22% – in the last fortnight. That last figure is possibly a casualty of the PM’s decision to leave D-Day commemorations early – and could conceivably have been worse.

The notable drop in Labour’s vote – three points to 38% – will do little to cheer a Tory party in the doldrums, consumed with their own existential angst. This is because the switch seems to match the Lib Dems jumping up four point to 15%. Much of the YouGov fieldwork was done when the Lib Dem manifesto was receiving peak coverage.

The question is whether the Tory manifesto launch could possibly have provided anything new with which to turn things around, from a position as dire as any Conservative can remember in living memory.

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What is in the Conservative Party manifesto?

Sunak has thrown everything at this manifesto: it’s 72 pages long, with nearly £20bn worth of tax and spending announcements.

There are pledges designed to appease and appeal to just about every demographic, from 2p off national insurance for working families, to accelerated national insurance abolition for the self-employed, to tax cuts for pensions, to help for first-time buyers and tax breaks for wealthier parents. This is to be paid for, Sunak said, in large part by yet more promises to pare back welfare, squeeze the public sector and more anti-avoidance measures.

It is a “kitchen sink” manifesto for the Tories. But it is not the first “kitchen sink” manifesto in recent memory.

Sir Keir Starmer boldly compared Sunak’s offering with that of Jeremy Corbyn – stuffed with policies that seem, and poll as, popular but are not sustainably affordable as an overall package.

The Labour leader was, of course, displaying the chutzpah of a man 20 points ahead in the polls by casually disowning a manifesto he himself stood on five years ago.

Nevertheless, his political purpose by making this point is two-fold: firstly, he is attempting to needle away further at the Conservatives’ claim of economic credibility, while also reminding people that manifestos stacked with popular policies do not automatically win elections.

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PM launches party manifesto

But despite having individually popular ideas, the prime minister was unable to deliver perhaps the biggest thing Tory MPs might have wanted – a promise to reduce the overall tax burden in the next parliament.

It is the tax burden that hangs around the neck of a party proud of its low tax heritage, at an event at which Sunak had the audacity to invoke Nigel Lawson, the 1980s tax-cutting chancellor.

Sunak cannot bring it down. Yet he is unwilling to be completely automatically transparent over this point.

Rishi Sunak poses with supporters before the launch of the Conservative Party General Election manifesto.
Pic: PA
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Rishi Sunak with wife Akshata Murty and supporters at the launch. Pic: PA

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Examine carefully this painful exchange in the questions from the media afterwards, when Sunak’s sleight of hand was noticeable.

He was asked by the Daily Mail: “Can you today guarantee that if you get in, overall taxes will be lower by the time you finish?”

To this, Sunak replied: “Because of the measures that are announced in the manifesto and you can see that document afterwards, the tax burden will be about one percentage point lower in every single year compared to the forecast that you saw at the spring budget a few months ago that Jeremy (Hunt, the chancellor) outlined.”

This answer is deliberately elliptical, because the truth is hard: more people are dragged into higher tax bands because of frozen thresholds, designed to pay back some of the debt incurred in COVID.

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As my colleague Ed Conway, Sky’s economics editor, says, even after the tax cuts in this manifesto, everyone will still be paying higher taxes in 2028-29 than we are today.

So the answer to the Daily Mail is yes – the tax burden will be higher, albeit not as high as previously planned.

Sunak’s answer, while true, made it sound like the picture is better than it is when it comes to tax – and it’s a complication for a Tory leader trying to make tax the key dividing line with his Labour opposition in this election.

As Beth Rigby pointed out, a recent poll shows that only one in six voters believe Sunak won’t raise their taxes, or raise major taxes, compared with one in four for Labour – and she asked him whether this means he has “blown it”.

“I’m not afraid to do things that are difficult,” he pleaded in response. It’s not clear many on his own side believe this argument will wash with the public at this late stage in the political cycle.

Rishi Sunak and Sir Keir Starmer will face questions from Beth Rigby and members of the public during Sky News’ special leaders’ event on Wednesday.

The programme airs live from Grimsby from 7pm on Sky News – Freeview channel 233, Sky 501, Virgin 603, BT 313 – and streaming on the Sky News website, app and across social channels. It is also available to watch on Sky Showcase.

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Crypto’s comeback: Triumph over turmoil in 2024

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Crypto’s comeback: Triumph over turmoil in 2024

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Major political consequences for Farage, Badenoch and the Tories ahead in 2025

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Major political consequences for Farage, Badenoch and the Tories ahead in 2025

British voters are in for a relatively untroubled 2025, after the “Year of Elections” which saw a new government in the UK and major upheavals around the world, including the victory of Donald Trump, who will be inaugurated as US president for the second time on 20 January.

In all likelihood, Sir Keir Starmer needs not go to the polls for some four and a half years, thanks to the huge Commons majority Labour won last July.

August 2029 is the deadline for the next UK general election, by which time the second Trump administration will have been and gone.

The next elections for the Scottish parliament and the assemblies in Wales and Northern Ireland are not due until 27 May 2026.

All of which means slim pickings for those trying to glean the political mood of the UK and a much greater focus than usual this year on what little voting is due to take place: English councils on 1 May. Making detailed sense of the picture will be a tough task for two vital reasons.

Comparisons with the last local elections in the same places in May 2021 will be tricky because the government’s English Devolution Bill has given some areas the chance to opt out of elections this year if they are likely to become part of the proposed combined single-tier “Strategic Authorities”.

Secondly, in 2021 the state of the parties in contention was very different. There was no Reform UK party, and none of its predecessor Brexit or UKIP parties to speak of. Boris Johnson’s Conservatives were riding high. The Tories made big gains at council level, while Labour, Liberal Democrats and Greens stalled.

The political map has been transformed since then. Today there are five Reform UK MPs at Westminster, four Greens and a record 72 Liberal Democrats.

The standard question in opinion polls is: “How would you vote if there were to be a general election tomorrow?”.

We all know there is not going to be one for years.

Besides, as beleaguered politicians always like to point out when the news is bad, even when one was imminent in 2024, the polls did not precisely reflect what happened with “real votes in real ballot boxes”.

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Picture is not cheering for established parties

What the polls do give is a broad indication of the trend in opinion, and the picture is not cheering for the established parties.

Labour and the Conservatives are neck-and-neck in the mid-20% range, an astonishingly low level of support for either of them.

Reform UK is only about five points behind, clearly the current third force in British politics and well up on their 14% at the general election.

The Liberal Democrats, at around 12% and the Greens at 6% are more or less holding their vote share.

Prime Minister Sir Keir Starmer departs 10 Downing Street, London, to attend Prime Minister's Questions at the Houses of Parliament. Picture date: Wednesday December 18, 2024. PA Photo. See PA story POLITICS PMQs. Photo credit should read: James Manning/PA Wire
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Sir Keir Starmer. Pic: PA

Can Reform and Farage keep up momentum?

The big question in the 2025 local elections is whether Reform UK and its leader Nigel Farage can keep up their momentum.

On the face of it the party seems well placed to make a splash. Because it is starting from zero – any council seats it wins will count as gains.

Reform UK has reorganised since the general election and is now trying to establish a competitive grassroots operation.

Mr Farage speaks at a Trump campaign event in Arizona in 2020. Pic: Reuters
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Nigel Farage speaking at a Donald Trump campaign event in Arizona in 2020. Pic: Reuters

Funding does not seem to be a problem. Zia Yusuf, a multi-millionaire former Goldman Sachs banker, has taken over as party chairman.

The property magnate Nick Candy, Reform UK’s new treasurer, was in the group that met Elon Musk at Mr Trump’s Mar-e-Largo headquarters. Afterwards Mr Farage downplayed reports Mr Musk might be prepared to donate as much as $100m (£79m) to his party.

Nigel Farage and Reform UK treasurer Nick Candy with Elon Musk. Pic: PA
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Nigel Farage and Reform UK treasurer Nick Candy with Elon Musk. Pic: PA

Reform is splitting the right-of-centre vote

Reform UK claimed last week to have several thousand more members registered than the Conservative Party’s official figure of 131,680 – a ticker on their official website is keeping count.

The party is currently splitting the vote on the right of centre with the Conservative Party as its prime target. The strong Tory performance in these areas last time leaves them looking highly vulnerable.

In 2021, the Conservatives won control of 19 out of 21 county councils and seven of 13 unitary authorities. In subsequent local elections in other areas the Conservatives suffered heavy losses, meaning overall they are now behind Labour for the total number of councillors. This year the Tories are defending their last remaining electoral high point.

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‘Something remarkable’ about Gen Z

Tories don’t know whether to fight or accommodate Reform

Mr Farage is the outstanding communicator active in British politics, who has frequently exploited non-Westminster elections to exert pressure on the UK government, most notably in the 2014 and 2019 European elections, when strong performances drove the Conservatives first to the EU membership referendum and then to a hard Brexit.

The Conservatives do not know whether to fight or try to accommodate Reform UK.

Should Reform hammer them in this year’s council elections, it could be the end for Kemi Badenoch’s leadership. In the longer run it is conceivable Reform could supplant the Conservatives – or take them over by merger – as the main political force on the right of British politics.

Conservative party leader Kemi Badenoch speaking at the Confederation of British Industry (CBI) conference.
Pic: PA
Image:
Kemi Badenoch. Pic: PA


Reform also targeting Labour voters

There is also a Reform UK threat to Labour as well.

So far Labour has dominated the new strategic mayoralities and combined authorities in England. They currently hold all four of those up for election in May 2025: West of England, Cambridgeshire, Doncaster and North Tyneside. Two more mayors are being voted for this year in Greater Lincolnshire and Hull and East Yorkshire.

While socially right-wing, Reform UK is tailoring its economic message to the less well-off, including to populations in the so-called “Red Wall”, de-industrialised areas of the country which were once safe Labour constituencies. For example, Dame Andrea Jenkyns, the former Conservative MP and minister, is now Reform’s candidate to be the new mayor of Greater Lincolnshire.

Unlike the two main parties, Reform has a straightforward policy on the threatened Scunthorpe steelworks – nationalise it. It has obvious appeal even though there is no chance Dame Andrea could enact it.

A disappointment for Farage would not be the end of the insurgency

Voters are more inclined to vote with their hearts when the national government is not at issue. One of Sir Keir’s nightmares must be that the devolution this government is spreading across England starts to light up in colours other than red.

It is certainly possible this year’s council election results could be a major disappointment for Mr Farage’s party. If so it will not be the end of the insurgency. Reform UK is already also making plans to inflict damage on Conservatives, Labour and SNP alike in the next set of non-Westminster elections, in 2027, in Scotland and Wales.

2025’s comparatively minor elections are set to have major political consequences at the very least for Mr Farage, Ms Badenoch and the Conservative Party.

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Will ETH outperform BTC in Jan? IRS DeFi broker rules, and more: Hodler’s Digest, Dec. 22 – 28

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Will ETH outperform BTC in Jan? IRS DeFi broker rules, and more: Hodler’s Digest, Dec. 22 – 28

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