Starmer says many ‘still struggling with cost of living’ in Christmas message

Sir Keir Starmer has acknowledged that many are “still struggling with the cost of living” in a Christmas message that noted “hardship can feel even more acute” over the festive period.

The Prime Minister said “we should each do our bit” as he urged Britons to “reach out” to friends, relatives and neighbours.

It comes at the end of a turbulent year for the Government with little sign of momentum for its push for economic growth.

The Bank of England warned last week that growth was on track to flatline in the final three months of 2025, having been on a downward path since the beginning of the year.

And data showed consumer confidence remained subdued ahead of Christmas in the face of cost-of-living pressures.

Sir Keir also used his message to pay tribute to those serving others during the holidays.

In the video recording released on Christmas Eve, he said: “Just as so many put their feet up, some truly special people will be pulling on their uniforms and heading out to work.

“Our NHS staff emergency services and the brave men and women of our armed forces all playing their part, doing their bit to care for the nation and to keep us safe.

“Many volunteers will be out there as well.

“Serving food. Reaching out to help those lonely or in need.

“So on behalf of the whole country, I want to say a big thank you.

“As a nation, we should raise a glass to you this Christmas.

“But more than that, we should each do our bit as well.

“I know many across Britain are still struggling with the cost of living.

“Helping with that is my priority.

“But at this time of the year, which celebrates love and abundance, loss or hardship can feel even more acute.

“So call around to a neighbour. Check in on a friend or a relative who you haven’t heard from for a while.

“Reach out. It can make a huge difference.

“That is what Christmas is about.”

Sir Keir has grappled with leadership rumblings and struggles inside his party that have led him to change course on several policies, including plans to cut winter fuel payments and reforms to curb the soaring welfare bill.

In the latest climbdown on Tuesday, the Government announced it will raise the inheritance tax relief threshold for farmers from £1 million to £2.5 million following months of protests and warnings over farmers contemplating suicide to avoid the taxes as they pass their businesses from generation to generation.

Tory leader Kemi Badenoch, who also faced leadership speculation but completed her first year as leader without a formal challenge emerging after her 12-month grace period expired, said it had been the “biggest challenge of my life” in her Christmas message.

She said: “Life can be amazing, but it can also be bumpy.

“Christmas is a chance to reflect on the year that’s been, be grateful for the good things, mourn what we may have lost, and look forward to what we are going to do in the coming year.

“With that in mind, I want to say a big thank you to everyone who has supported me during my first year as Leader of the Opposition.

“It’s been the biggest challenge of my life, but it’s also been a wonderful year. I can’t wait to get back to work next year to create a better United Kingdom.”

Christmas trees were the backdrop for both Sir Keir and Mrs Badenoch’s videos, but Liberal Democrat leader Sir Ed Davey made the Norwegian spruce behind him the focus of his message.

He said: “Now this Christmas tree behind me gets a lot of abuse every year. The social media trolls who spread right wing conspiracy theories like to compare it to the tree in New York City, in Warsaw and in Budapest. They say it is an example of our country’s decline.

“And I have to admit – on the surface it does look a little underwhelming. But it’s also my favourite Christmas tree.

“You see, this tree is a gift from the people of Oslo to the people of Britain for our support during the Second World War. They’ve sent one every year since 1947. It’s a wonderful tradition that reminds us of the greatest generation and the sacrifices they made.”

Sir Ed added that it made him think “people standing together in tough times – whether against the Nazis in the 1940s, or right now in Ukraine”.

Reform UK leader Nigel Farage posted photos of himself handing out “Christmas deliveries in Clacton” on Tuesday.