Prime Minister Keir Starmer has delivered a robust defence of his government's first Budget, hitting back at critics while setting out his vision for welfare reform and future relations with the European Union.
Defending the Chancellor and the Budget
Speaking in central London on Monday, 1st December 2025, the Prime Minister directly addressed accusations that Chancellor Rachel Reeves had misled the public by overstating the dire state of the public finances prior to last week's fiscal statement. Starmer insisted there was 'no misleading' by the Chancellor, staunchly defending her position.
He framed the Budget as a 'moment of personal pride', arguing that its measures were designed to tackle child poverty and improve the cost of living for struggling families. "It is a fundamental British belief that every child should go as far as that talent will take them, and poverty is a barrier to that," Starmer told the audience.
The PM went on the offensive against political opponents, stating his government had chosen the right path. "We could have cut public services. We could have ignored child poverty. We could have rolled the dice with extra borrowing. But I firmly believe that those options have been tested to destruction," he declared.
Brexit Damage and a New EU Approach
In a significant section of his speech, Starmer turned to the economic impact of Brexit. He stated unequivocally that the Tory Brexit deal had 'significantly hurt' the UK economy.
Outlining a shift in foreign policy, the Prime Minister said the country must now adopt a 'grown-up' approach in its dealings with the European Union, emphasising that forging a closer relationship with Europe was of critical importance for future prosperity.
Welfare Reform on the Horizon
Another major policy announcement centred on the welfare system. Starmer confirmed that welfare reform is firmly on the government's agenda.
He claimed there was a broad 'consensus' on the need to change the current system. When pressed on whether he would suspend Labour MPs who might rebel against such reforms, the Prime Minister pointedly refused to be drawn, sidestepping the question.
Starmer highlighted the acute financial pressure on households, noting that 'too many' working families are struggling to make ends meet. He relayed conversations with parents who said they were working "harder and harder" but found it increasingly difficult to pay their bills.
Looking Ahead
The speech served as both a defence of the government's opening economic salvo and a marker for future policy battles, particularly on welfare. By linking domestic economic hardship to the legacy of Brexit, Starmer is seeking to frame his administration's challenges while setting a new course for international engagement. The coming months will test the claimed 'consensus' on welfare and the practicality of building warmer ties with Brussels.
