Published by Global Banking & Finance Review®
Posted on December 8, 2025
2 min readLast updated: January 20, 2026
Add as preferred source on GoogleUK PM Keir Starmer defends the budget, emphasizing market confidence and economic growth. He highlights the importance of reducing inflation and interest rates.
LONDON, Dec 1 (Reuters) - British Prime Minister Keir Starmer said last week's budget had retained market confidence which was key to providing stability for investors and businesses, and would in time lead to economic growth.
Starmer gave a speech on Monday in which he sought to defend the budget outlined last week by finance minister Rachel Reeves, after criticism that it would hit people with further tax rises and lacked policies which would boost growth.
"The most important things that we can do for growth, the most important things that we can do for business is first to drive inflation down so that interest rates come down further, and the cost of business investment comes down with it," Starmer said.
"And second, to retain market confidence that allows for real economic stability, so that businesses can plan. That is what the country needs most right now."
He also said that he was confident the economy could beat forecasts now that it was on the right path.
"When it comes to economic growth and living standards, we're confident we can beat the forecast," he said.
(Reporting by Sam Tabahriti and Alistair Smout, writing by Sarah Young; editing by Kate Holton)
Market confidence refers to the level of trust investors and businesses have in the stability and growth potential of an economy. High market confidence can lead to increased investments and economic growth.
Interest rates are the cost of borrowing money, expressed as a percentage of the loan amount. They influence economic activity by affecting consumer spending and business investment.
Economic growth is the increase in the production of goods and services in an economy over a period of time, typically measured by the rise in Gross Domestic Product (GDP).
Inflation is the rate at which the general level of prices for goods and services rises, eroding purchasing power. Central banks attempt to limit inflation to stabilize the economy.
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