Government in ‘survival mode’ and policy stalled, industry leaders told

UK politics is becoming increasingly “fractious”, with a Prime Minister in “survival mode” and policy drifting as a result, but the government has responded with “cautious, targeted measures” to the UK’s “clear vulnerability” on jet fuel.

That is according to Barclays director for government relations Sophie Wheeler-Traherne who identified three “core pressures” on the government, arguing: “Labour’s huge majority is itself a destabilising factor – managing 400-plus MPs was always going to be a challenge – and there is the pressure on government spending.

“The fragmentation of the party system with the surge of Reform UK and the Green Party adds to the uncertainty.”

She told the recent Barclays Travel Forum in London: “Layered on top of that there is the latest on the Mandelson affair, and on top of that there is the geopolitical situation and the war.”

Wheler-Traherne suggested: “When politicians are in survival mode and responding to crisis situations, policy can drift [and] the mood in Westminster is fractious. It’s quite a combination.”

However, the government has responded to the threat of shortages of fuel, especially jet fuel, due to the crisis in the Middle East.

Wheeler-Traherne acknowledged: “There is a clear vulnerability for the UK on jet fuel.

“In the short term, it means contingency planning and sourcing alternative supplies. Over the long term, it means accelerating sustainable aviation fuel (SAF) production.”

She noted: “Right now, the government is talking about cautious, targeted measures rather than blanket subsidies [and] we would expect more targeted interventions.” 

Wheeler-Traherne also noted “political pressure mounting” over the queues facing UK travellers at EU airports due to the biometric-registration requirements of the EU’s Entry/Exit System (EES).

She told the forum: “The government is clear this is an EU problem. I would expect a lot more debate and political pressure in the Commons, but I’m not sure what the government can do in practice.”

Wheeler-Traherne reported “lots of rumours in Westminster on whether the Prime Minister will stay on beyond May 8” following devolved assembly elections in Scotland and Wales and local elections in England on May 7. 

But she said: “The timing is tricky. There is the international situation, an election is still a way away, and there is no unifying candidate.”