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Prime Minister Keir Starmer’s economic strategy is under fire as Labour grapples with high-profile resignations and a £30 billion budget deficit.
The departure of Angela Rayner, who resigned over a stamp duty scandal, and Baroness Poppy Gustafsson, the investment minister, has raised doubts about Labour’s ability to attract business and stabilize the economy.
Chancellor Rachel Reeves, set to present the autumn budget on November 26, 2025, faces pressure to outline a robust growth plan amid warnings of a “doom loop” from economist Mohamed El-Erian.
Rising borrowing costs, with 30-year debt at a 27-year high of 5.72%, and a falling pound add to the challenges.
Starmer’s reshuffle aims to reset his premiership, but internal party dissent and Nigel Farage’s criticisms of Labour’s free speech policies complicate matters.
Reeves’ focus on fiscal discipline and investment must counter Tory accusations of economic mismanagement as Labour seeks to restore public and investor confidence.




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