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Prime Minister Keir Starmer is grappling with mounting challenges as Labour navigates a £30 billion budget deficit and political fallout from high-profile resignations.
The exits of Angela Rayner, over a stamp duty scandal, and investment minister Baroness Poppy Gustafsson have weakened Labour’s economic credibility.
Chancellor Rachel Reeves, preparing for the November 26, 2025, budget, faces pressure to deliver a growth plan amid warnings from Mohamed El-Erian of a fiscal “doom loop.” UK borrowing costs, at a 27-year high of 5.72% for 30-year debt, and a falling pound add to the strain.
Starmer’s reshuffle aims to stabilize his leadership, but Nigel Farage’s accusations of censorship and internal party dissent complicate matters.
Conservative leader Kemi Badenoch has capitalized on Labour’s vulnerabilities, criticizing Starmer’s handling of immigration and ethics scandals.
Reeves’ focus on fiscal discipline is critical, but public and investor confidence hangs in the balance as Labour faces a turbulent autumn.




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