This had been blamed in part on the mental health crisis but it has also been suggested that a poorly designed benefits system is also part of the problem.

Labour’s plans on this area are not yet clear and again it is not an issue that can be fixed quickly or cheaply.

Green shoots emerging?

Much is being made of the inheritance Labour has received from the Conservatives and how it has left them hamstrung.

But while economic growth will be hard to come by, there are some signs of positivity alongside the long-term vision set out by Reeves.

Short-term economic growth appears to be picking up again following a shallow recession at the end of 2023.

Coupled with consumer confidence increasing as the cost of living crises eases, things may just turn in Labour’s favour at the right time.

With UK equity valuations remaining depressed, investors are now selectively seeing buying opportunities – as evidenced by recent acquisition activity from overseas companies and investors.

While the UK is not out of the woods by any means and still faces serious structural challenges, Labour has at the very least presented a vision for its economic growth at a time when the global picture looks so uncertain.

If it can bring private investment into the UK at the expense of Europe, where political uncertainty has risen, we might just see those green economic shoots take root and witness a revival in fortunes.

However, it is going to take a long time for this to all play out, and we must not underestimate the economic challenge faced ahead of the next election in five years’ time.  

Lindsay James is an investment strategist at Quilter Investors