Labour failed to prepare properly for power, admits Keir Starmer's former top aide Morgan McSweeney - as he says Government was 'too gloomy' about the economy when it took office

By GREG HEFFER, POLITICAL CORRESPONDENT Published: 14:24, 2 July 2026 | Updated: 14:26, 2 July 2026 Labour failed to prepare properly for power before the 2024 general election, Keir Starmer's former top aide has admitted. Morgan McSweeney, who was the Prime Minister's chief of staff in Downing Street until February this year, said the party 'hadn't done enough to prepare for Government'. He also acknowledged Labour should have been 'way more optimistic' during its first few months in office. When she first became Chancellor, a gloomy Rachel Reeves repeatedly moaned about her economic inheritance from the previous Tory administration. As she sought to fill a claimed £22billion 'black hole' in the public finances, Ms Reeves axed winter fuel payments for millions of pensioners - a decision she and Sir Keir later U-turned on. In a BBC interview, Mr McSweeney admitted the now-reversed policy had 'defined the Government in a way that did us a lot of damage'. He also pointed to the 'freebies' row over Sir Keir accepting clothes and spectacles from Labour donor Lord Alli for having harmed the Government during its first few months. Mr McSweeney, who was forced to quit his No10 role over the Peter Mandelson scandal, revealed he was too sad to watch the entirety of Sir Keir's tearful resignation speech in Downing Street last week.  Labour failed to prepare properly for power before the 2024 general election, Keir Starmer's former top aide Morgan McSweeney has admitted In a BBC interview, Mr McSweeney also acknowledged Labour should have been 'way more optimistic' during its first few months in office Sir Keir is almost certain to be replaced by Andy Burnham as Labour leader and PM on 20 July, in the absence of any other Labour leadership contenders. But Mr McSweeney's admission that Sir Keir was under-prepared to enter Government will raise concerns about Mr Burnham's ability to hit the ground running. The former Greater Manchester mayor has only just returned to Westminster after winning the Makerfield by-election on 18 June. He has since been coy about his plans for Government and exited a speech he gave in Manchester on Monday without taking questions from the media, leaving the country little clearer about details of his policy platform. Speaking to the BBC's Political Thinking with Nick Robinson podcast, Mr McSweeney reflected on his own experiences ahead of entering Downing Street as one of Sir Keir's most senior advisers in July 2024.  He said: 'Early in 2024, when we were preparing for the general election, when I was sitting down with (now Work and Pensions Secretary) Pat McFadden in windowless rooms, hour after hour, planning for day one - I did start to realise that we hadn't done enough to prepare for Government. And then we got exposed for that early.'  Mr McSweeney added: 'We didn't prepare enough for what kind of world we were going to. We are now in a very different era than when Labour was last in government. 'I think we didn't have enough conversations at the top of the party about what that meant, how to prepare for it, what that meant for the state. 'You have to deliver quite quickly for people, for them to see the change quickly. And I think we didn't come in with enough of a theory about how we would do that.' Mr McSweeney resigned as Sir Keir's chief of staff in February this year after he pushed for Lord Mandelson's appointment as Britain's ambassador to the US. With Sir Keir now having announced his own departure from No10, Mr McSweeney said he was 'optimistic' about Mr Burnham becoming the next PM. He also backed the former Greater Manchester mayor's bid to create a Downing Street team in Manchester, known as 'No10 North'. 'If at the top of Government there are people who don't just have a desk somewhere outside London but actually live their whole lives outside of London, I think that will be a good thing,' Mr McSweeney said. 'A lot of people won't like it. I think it's a good idea. I think he should just push it through, the logistics can be sorted out.' The comments below have not been moderated. The views expressed in the contents above are those of our users and do not necessarily reflect the views of MailOnline. By posting your comment you agree to our house rules. Do you want to automatically post your MailOnline comments to your Facebook Timeline? Your comment will be posted to MailOnline as usual. Do you want to automatically post your MailOnline comments to your Facebook Timeline? Your comment will be posted to MailOnline as usual We will automatically post your comment and a link to the news story to your Facebook timeline at the same time it is posted on MailOnline. To do this we will link your MailOnline account with your Facebook account. We’ll ask you to confirm this for your first post to Facebook. You can choose on each post whether you would like it to be posted to Facebook. Your details from Facebook will be used to provide you with tailored content, marketing and ads in line with our Privacy Policy.