Prime Minister Sir Keir Starmer has delivered a sombre Christmas message, acknowledging that people across Britain are "still struggling with the cost of living" as his government faces internal revolt and economic stagnation.
A Year of Chaos and Climbdowns
The Prime Minister's festive address, released on Christmas Eve, struck a subdued tone against a backdrop of a chaotic political year. Sir Keir is finishing 2025 on a humiliating note, having been forced into a major U-turn on the government's flagship farms tax following fierce opposition from his own Labour MPs.
This reversal is the latest in a string of policy climbdowns, which have also included contentious cuts to the winter fuel allowance and efforts to curb benefits. The political turmoil is compounded by rising speculation of a Labour coup, with polls suggesting voters do not expect Sir Keir to survive another year in Downing Street.
Potential rivals, including Wes Streeting, Angela Rayner, and Manchester mayor Andy Burnham, are widely regarded as being "on manoeuvres" for his position.
Economic Stagnation and Household Squeeze
The government's economic agenda appears to be faltering, with the Bank of England warning of stagnation. Recent figures revealed that household incomes were going into reverse even before the impact of Chancellor Rachel Reeves' Budget tax raid last month.
In his video message, Sir Keir insisted that helping with the cost of living is his "priority". He paid tribute to NHS staff, emergency services, the armed forces, and volunteers working over the festive period.
However, he urged the public to "do our bit" by reaching out to neighbours, friends, and relatives who may be lonely or in need, stating that loss or hardship can feel more acute at Christmas.
Policy Reversal on Farms Tax
The scale of the government's political difficulties was highlighted by Tuesday's significant climbdown on agricultural policy. After months of protests and dire warnings, including reports of farmers contemplating suicide over the financial burden, the government announced it would raise the inheritance tax relief threshold for farmers.
The threshold was increased from £1 million to £2.5 million to ease the process of passing family businesses between generations.
Meanwhile, Conservative leader Kemi Badenoch used her own Christmas message to reflect on her "biggest challenge of my life" during her first twelve months as Leader of the Opposition, signalling her party's readiness to capitalise on Labour's woes in the coming year.
