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Starmer Praises 2025 Budget, Claims It Will Retain Market Confidence

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  //business-finance.news-articles.net/content/202 .. get-claims-it-will-retain-market-confidence.html
  Published in Business and Finance on Monday, December 1st 2025 at 9:32 GMT by reuters.com

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UK Prime Minister Keir Starmer lauds 2025 budget, pledges growth‑oriented fiscal plan

On Thursday, 1 December 2025, Britain’s new Labour government welcomed the fiscal report presented by the Chancellor of the Exchequer at the House of Commons. Prime Minister Keir Starmer publicly praised the budget, stressing that it would “retain market confidence” and lay the groundwork for a “sustained economic upswing” over the next decade. The article, published by Reuters, tracks the key take‑aways from the budget, the reactions it has already triggered in financial markets, and the wider context that frames the policy package.

Market‑friendly fiscal stance

Starmer’s remarks underscored the government’s confidence that the budget would preserve the trust of investors and the broader economy. “We are delivering a budget that is both prudent and pro‑growth,” he said, echoing the Chancellor’s own framing that the package “balances responsibility with opportunity.” Reuters noted that the pound ticked up against the euro and dollar as the UK’s national debt trajectory was seen as moving towards a more sustainable footing. The FTSE 100 also gained 0.7 % in late‑afternoon trading, signalling that corporate investors were responding positively to the fiscal outlook.

The budget’s headline figures reinforce this narrative. Public‑sector net borrowing is forecast at 4.5 % of GDP in 2025, a slight reduction from the 4.7 % projected in the 2024 budget. By 2026 the deficit is expected to fall to 3.9 % of GDP, and the debt‑to‑GDP ratio is set to decline from 96 % today to 85 % by 2028. These numbers represent a “steady, albeit cautious, path to fiscal consolidation” that Starmer highlighted as a cornerstone of the government's strategy.

Growth projections and inflation control

A central theme of the budget is the expectation of modest but positive growth. The Treasury’s forecasts predict GDP to rise by 0.5 % in 2025 and by 1.2 % in 2026. Inflation, meanwhile, is projected to ease from a current 4.8 % to 4.0 % in 2026 and further to 3.2 % by 2028, thanks in part to anticipated reductions in energy and commodity prices. Starmer described the inflation outlook as “the most encouraging in a decade,” and the Chancellor added that the “policy mix will ensure that inflation remains firmly under control while the economy continues to expand.”

The article links to a Reuters piece that offers deeper insight into the inflation forecast, explaining how the Bank of England’s policy rate will likely stay at 3.5 % through the year before a gradual cut as price pressures ease.

Investment priorities and social priorities

Beyond the headline figures, the budget contains a series of targeted investments aimed at underpinning long‑term growth and reducing inequality. The Treasury has earmarked £4.5 bn for the Skills and Employment Fund, which will provide apprenticeships, up‑skilling programmes, and job‑placement services in the hardest‑hit regions. A separate £2.8 bn allocation is directed toward the National Housing Strategy, which will fund 30 000 new homes by 2030, with a particular focus on affordable units in high‑cost cities.

Starmer also announced a “Green Growth Initiative,” a £3.0 bn investment in clean‑energy infrastructure and a £1.2 bn subsidy for electric‑vehicle adoption. The Chancellor’s own brief on the budget notes that these measures aim to generate roughly 70 000 new jobs over the next five years and to place the UK at the forefront of the global green‑technology sector.

In the realm of social policy, the Treasury has increased the child benefit ceiling by 5 %, lifting the top rate from £21.45 to £22.63 per week. This measure, coupled with the expansion of the “Future Skills Programme,” is intended to reduce child poverty and enhance human capital.

Political context and critiques

The budget was delivered in the wake of the 2025 general election, in which Labour secured a narrow majority. Starmer’s praise is therefore both a political statement and a policy endorsement. He framed the fiscal plan as a continuation of the commitment to “fairer growth” that defined Labour’s campaign platform. The opposition, led by the Conservatives, has already begun to issue critiques, arguing that the Treasury’s deficit targets are too aggressive and that the policy mix risks stifling small‑business investment.

The Reuters article references a subsequent commentary piece that analyses the Conservative response, noting that they have called for a “balanced approach” that keeps debt in check while ensuring sufficient public spending to maintain economic momentum.

Looking ahead

The article concludes by noting that the budget sets the tone for the next several years. With the Treasury’s forecast of a 0.5 % growth in 2025 and a 1.2 % rise in 2026, the government aims to keep the economy moving above its pre‑pandemic trajectory. The combination of fiscal prudence—reflected in a gradual deficit reduction—and targeted investment in skills, housing, and green infrastructure is designed to build resilience against future shocks.

Starmer’s confidence that the budget would “retain market confidence” appears to have found resonance in both the financial markets and the wider public. The Reuters piece invites readers to follow the linked stories for a more granular breakdown of the budget’s components, the Bank of England’s monetary policy stance, and the ongoing debate over fiscal responsibility versus social investment.

In sum, the 2025 budget emerges as a carefully calibrated package that seeks to balance the twin imperatives of fiscal discipline and sustainable growth. Whether it will deliver the promised outcomes remains to be seen, but the immediate signals—market optimism, projected debt reduction, and a clear investment agenda—suggest that Britain is charting a path toward a more resilient economy in the post‑pandemic era.