From the Budget to Badenoch: Between a Rock and a Hard Place

From the Budget to Badenoch: Between a Rock and a Hard Place

I’ve watched the U.K.’s latest budget announcement and the appointment of Kemi Badenoch as the Conservative Party’s new leader with a mixture of cautious hope and deep concern. These developments signal shifts in how marginalised and racialised communities in the U.K. may be supported—or overlooked—in the months and years to come.

Budget 2024: Some Steps Forward, Many Steps Back

The 2024 budget presented by the UK Labour government offers a patchwork of small improvements, but it’s far from the transformative change many had hoped for. While measures aim to alleviate some of the pressure on those experiencing deep and persistent poverty, it feels more like temporary relief than a long-term strategy for systemic change.

Key headlines that will impact people and communities:

One of the most significant updates is the reduction of debt repayment rates for those on Universal Credit from 25% to 15%. This change will provide a modest reprieve for those struggling to balance basic expenses with crippling debt repayments.
The extension of the Household Support Fund is another positive measure, offering continued assistance to the most vulnerable families.
For carers, an increase in the earnings threshold for Carer’s Allowance recognises their critical work, albeit in a limited way.
A 6.7% increase in the National Minimum Wage, £11.44 to £12.21 an hour.

Where the Budget Falls Short

A headline policy is the increase in the National Minimum Wage to £12.21 an hour. While this might look like progress, it remains below £15 per hour, which many campaigners argue is necessary to pull people out of real poverty. With inflation and the rising cost of living, £12 an hour is a small cushion, not a solution. It’s hard to shake the feeling that this measure is more of a sticking plaster on a much deeper wound left by years of austerity. Actual living costs require a more ambitious approach to wage reform.

At Spark Insights, we spent a good part of 2023 researching the impact that long term experiences of debt and poverty have on mental health, which revealed a complex, compounding effect: prolonged financial strain not only worsens mental health but does so in an environment where support systems are stretched thin or unavailable. This creates a cycle of deteriorating well-being and financial hardship, leaving people with limited resources to break free from either.

Despite some helpful measures, the budget fails to deliver meaningful, long-term investments in key systems that disproportionately affect racialised and marginalised communities. For example, the healthcare sector, especially mental health services, received additional funding. However, the reality on the ground is that these services are still woefully under-resourced. Communities experiencing marginalisation often bear the brunt of these shortages due to systemic barriers in accessing quality care. The funding might help in the short term but does not address the chronic understaffing and long wait times that erode trust and accessibility in the healthcare system.

The budget also does little to address the pervasive information and access gaps that hinder people from understanding their legal rights, accessing quality employment, and receiving comprehensive support. While measures such as debt relief and wage increases are beneficial, they do not resolve the broader issues of systemic inequality that keep communities trapped in cycles of poverty and limited opportunity.

For small businesses (many of which play essential roles in supporting racialised communities), the budget’s increase in National Insurance, paired with the minimum wage rise, adds financial strain. Already battling post-COVID, Brexit, and inflation challenges, these businesses may face difficult choices such as cutting staff hours or delaying expansion plans.

Kemi Badenoch’s Leadership: Symbolic Representation or Real Change?

Some would have you believe that the appointment of Kemi Badenoch, a Black woman, as the new Conservative Party leader is a milestone worth celebrating. Whilst her leadership carried symbolic weight, representation alone does not equate to progress. Badenoch’s political record and public stance on race and inclusion fuel deep concern.

Badenoch has been known for critiquing aspects of anti-racist and inclusive policies, often framing them as divisive or detrimental to broader society. This rhetoric risks deepening divides and reinforcing barriers that many in racialised communities are working tirelessly to dismantle. While her leadership may inspire some by challenging traditional political norms, it also poses a risk if it results in policy choices that overlook the lived experiences of the communities that should benefit from such representation.

Not only is Badenoch's approach and stance divisive, but it also disregards vast bodies of evidence and research pointing to systemic racism. Her approach deepens the marginalisation of communities that need strong, supportive policy changes. While having a leader from a racialised background in such a prominent position is significant, representation without a commitment to inclusive, equitable policies risks reinforcing harmful systems rather than dismantling them. Her appointment reinforces a conservative stance that prioritises integration over transformation. For many racialised communities, this is likely to mean fewer initiatives that address systemic discrimination and a greater emphasis on assimilation into existing structures.

The presence of diverse leadership can only lead to meaningful change if it comes with a commitment to policies that uplift and protect those most affected by systemic inequities. Based on her track record, Badenoch’s tenure is unlikely to translate into equitable policy changes, leaving us with an empty gesture.

The Runnymede Trust report, submitted to the UN, condemns entrenched racial discrimination and inequality in the UK. It cites persistent racial disparities in education, employment, housing, health, and the criminal justice system, attributing them to systemic racism.
A study published in BMJ Open examines anti-racist interventions aimed at reducing ethnic disparities in healthcare. The research underscores how racism drives structured social and economic inequalities, leading to poorer health outcomes for ethnic minority groups.
The House of Commons Library's briefing on Race and Ethnic Disparities discusses the Commission on Race and Ethnic Disparities' findings, revealing significant educational disparities among ethnic groups. The report emphasises the need for systemic changes to address these inequalities.
The UK government's 2020 update on tackling racial disparity in the criminal justice system highlights ongoing disproportionality affecting ethnic minorities. The report acknowledges the systemic nature of these disparities and outlines measures to address them.

Building Strength through Community-Led Change

The combined effect of a budget that offers limited, short-term relief and the appointment of a leader whose stance undermines the recognition of systemic racism leaves racialised communities in a difficult position. Without substantial investment in key systems like health, legal rights, information access, and employment, long-lasting change remains out of reach. Badenoch’s leadership risks promoting a narrative that diminishes anti-racist work and dilutes genuine efforts at inclusion.

At Spark & Co., we believe that representation must come with a commitment to transformative policies that address systemic issues at their core. The 2024 budget and Badenoch’s leadership underscore why continuous advocacy and community-led change are essential. Progress requires leaders who prioritise the fight against systemic oppression, not those who dismiss it.

These challenges highlight the need for sustained, independent support for the anti-racism movement. Evidence of institutional and systemic racism—from health disparities to employment barriers and justice inequalities—demands robust, celebrated, and well-funded anti-racist work. While government policy is influential, real change often comes from grassroots activism, community initiatives, and organisations dedicated to liberation. Supporting these efforts, along with education, advocacy, and allyship, is vital to dismantling racism and building a just society.

Our mission remains clear: to equip racialised communities and challenge the systems that perpetuate inequality.