In a sober Christmas Eve address, Prime Minister Sir Keir Starmer has directly acknowledged that many across the United Kingdom continue to face significant hardship due to the persistent cost of living crisis.
A Call for Community Amid Economic Strain
Sir Keir's video message, released on Wednesday 24 December 2025, struck a reflective tone. He noted that while Christmas is a time celebrating "love and abundance," feelings of loss or financial difficulty can become "even more acute" during the festive period. The Prime Minister urged the public to "reach out" to friends, relatives, and neighbours, suggesting that a simple check-in "can make a huge difference."
He specifically called on the nation to support those serving others over the holidays, including NHS staff, emergency services personnel, and armed forces members. "On behalf of the whole country, I want to say a big thank you," Starmer stated, adding that the country should "raise a glass" to them.
Economic Headwinds Dampen Festive Spirit
The Prime Minister's message comes against a backdrop of concerning economic data. The Bank of England warned last week that economic growth is on track to flatline in the final quarter of 2025, continuing a downward trend observed since the start of the year. Separate data has shown that consumer confidence remains subdued ahead of Christmas, directly linked to ongoing cost-of-living pressures.
This festive period marks the end of a turbulent first year for Starmer's government, which has faced internal party struggles and been forced into several policy U-turns. These include revisions to plans for cutting winter fuel payments and reforms intended to curb the soaring welfare bill.
Political Rivals Share Their Seasonal Reflections
Other political leaders also issued Christmas messages. Conservative leader Kemi Badenoch, who completed her first year as Opposition Leader without a formal challenge after her 12-month grace period expired, described the role as the "biggest challenge of my life." In her message, she thanked her supporters and looked ahead to working to "create a better United Kingdom" in the coming year.
Liberal Democrat leader Sir Ed Davey used his message to defend the now-traditional Christmas tree in London's Trafalgar Square, a gift from Oslo. He highlighted its symbolism of "people standing together in tough times", drawing a parallel between Allied support during the Second World War and current backing for Ukraine.
Meanwhile, Reform UK leader Nigel Farage posted a constituency-focused video on social media platform X, showing him delivering presents to children in a care home and handing donations from a local butcher to NHS ambulance crews.
The government's latest policy reversal was announced on Tuesday 23 December, just before the holiday. Following months of protests, it raised the inheritance tax relief threshold for farmers from £1 million to £2.5 million. The move came after warnings that some farmers were contemplating suicide to avoid tax burdens when passing family businesses to the next generation.
