Prime Minister Keir Starmer has positioned last week's autumn budget as the foundation for a comprehensive, long-term plan to renew the British economy, directly confronting what he labels the 'politics of decline' from both the left and right.
In a robust defence of his government's financial choices, delivered on 27 November 2025, Starmer emphasised that the budget was designed to create a more stable economic environment, which has already begun driving down inflation and government bond yields.
A Budget of Fair Choices
The Chancellor, Rachel Reeves, announced several key measures aimed at providing immediate relief and long-term security. These included a £150 reduction in energy bills for households, protection for NHS funding, and a significant move to tackle child poverty by scrapping the controversial two-child benefit limit.
Starmer stressed that the revenue raised through taxation was done fairly, ensuring those with the broadest shoulders contribute their fair share. This approach, he argued, is vital for protecting public services, especially when the government spends £1 in every £10 on debt interest.
The budget builds on existing economic actions, including:
- £120 billion in extra capital investment for infrastructure like roads, rail, and energy.
- The biggest planning reforms in a generation to 'back builders, not blockers'.
- Support for the expansion of Heathrow and Gatwick airports.
- Newly signed trade deals with the EU, India, and the US.
The Three Pillars of Economic Renewal
Looking beyond immediate budget measures, the Prime Minister outlined a three-pronged strategy for national renewal on which his government will be judged at the next election.
First, a renewed growth mission will involve a sweeping away of unnecessary regulation. Starmer has tasked Business Secretary Peter Kyle with tackling pointless gold-plating and red tape that increase living costs and hinder industrial strategy. He argued that there is 'nothing progressive' in regulations that hurt the poorest or slow economic growth.
Second, the government will continue its reform of the welfare state, inherited from what Starmer called a 'failing Tory system'. A particular focus will be on tackling inactivity among young people. Former Health Secretary Alan Milburn has been commissioned to make practical recommendations to help young people with health conditions access work, training, or education, preventing a cycle of 'worklessness and dependency'.
Pursuing a Closer EU Trading Relationship
In one of his most significant declarations, the Prime Minister confirmed that closer trading ties with the European Union are a central element of his economic vision.
He stated plainly that the 'botched Brexit deal significantly hurt our economy', noting that erecting trade barriers with a major partner inevitably hurts growth and raises the cost of living. If we can get cheaper food, boost growth and create jobs by having a closer relationship with the EU, we should, Starmer asserted.
Concluding his argument, the Prime Minister positioned his government against quick fixes, championing instead a big, bold long-term plan. He vowed to deliver the economic renewal the country needs, making Britain 'a serious people, with a serious government, capable together of doing difficult things to regain control of our future.'
