Keir Starmer, in a somber Christmas message, acknowledged that many are “still struggling with the cost of living.” His remarks come after a tumultuous year marked by political instability and the looming threat of a Labour coup.

In his festive address, the Prime Minister emphasized that his top “priority” is to alleviate the hardships faced by people across Britain. Despite the challenges, he encouraged everyone to contribute positively by “reaching out” to friends, family, and neighbors during the holiday season.

Sir Keir concludes 2025 on a rather humbling note, having reversed his stance on the government’s key farms tax policy following resistance from within his own party. This U-turn is just one of several recent backtracks, including policies on reducing winter fuel allowances and attempts to tighten benefit regulations.

Adding to the government’s woes, their much-touted efforts to boost economic growth are faltering, with the Bank of England cautioning about potential stagnation. The economic landscape remains uncertain as leaders grapple with these pressing issues.

It is the latest in a string of climbdowns on issues including cuts to winter fuel allowance and efforts to curb benefits.

Meanwhile, the government’s vaunted push for economic growth looks to be stalling, with the Bank of England warning of stagnation.

After a chaotic year and with the threat of a Labour coup rising, the PM used his festive address to insist his ‘priority’ is making life easier in Britain (pictured hosting a reception for front line public service workers in No10 this week)

Figures this week showed household incomes going into reverse even before the impact of Rachel Reeves’ Budget tax raid last month. 

Polls have suggested that voters do not expect Sir Keir to survive another year in Downing Street, with rivals such as Wes Streeting, Angela Rayner and Manchester mayor Andy Burnham regarded as ‘on manoeuvres’. 

In the video recording released on Christmas Eve, the premier 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.’

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.

Kemi Badenoch used her own Christmas message to say her first 12 months as Tory leader had been the ‘biggest challenge of my life’

Kemi Badenoch used her own Christmas message to say her first 12 months as Tory leader had been the ‘biggest challenge of my life’. 

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.’