Rachel Reeves came under fire on Friday after attempting to take credit for a record-high FTSE 100.
London’s main share index broke through 10,000 points for the first time yesterday, marking a strong start to New Year trading.
And the Chancellor moved swiftly to capitalise on the news.
“The FTSE 100 breaking through 10,000 points for the first time is a vote of confidence in Britain’s economy,” she declared.
But critics branded her response as out of touch with reality – and experts dismissed her claim as misguided.
Shadow Business Secretary Andrew Griffith called Reeves “delusional” for the remarks.
And Julian Jessop, economist at the Institute of Economic Affairs, said: “This is a foolish thing for any Chancellor to say. The FTSE 100 is… a poor barometer of confidence in the economy.”
The index tracks the 100 largest companies on the London Stock Exchange, many of which generate their revenues internationally.
Rachel Reeves came under fire on Friday after attempting to take credit for the FTSE 100 breaking through 10,000 points
|
GETTYIts performance reflects global factors rather than domestic conditions.
The FTSE 250, which has closer ties to the British economy, has lagged behind.
Ms Reeves’s remarks followed a turbulent few weeks for data on Britain’s economy.
Friday saw fresh evidence of manufacturing difficulties, while concerns over festive retail performance came to light days earlier.
London’s main share index broke through 10,000 points for the first time on Friday
|
PAShadow Chancellor Sir Mel Stride rejected any cause for celebration.
“Unemployment is rising, retail is struggling, business confidence is at record lows and growth is flat – this is not a moment for self-congratulation,” he said.
And Mr Griffith accused the Chancellor of “clutching at straws” – while ignoring warning signs across the economy.
“A New Year walk down any high street would soon put her right,” he added.
He pointed to job losses, pain in the retail and hospitality sectors, and collapsing confidence as evidence that the “real economy” tells a different story.
Sir Mel Stride (left) and Andrew Griffith (right) laid into the Chancellor after her remarks
|
GETTY
The FTSE enjoyed a stellar 2025, climbing nearly 22 per cent in its strongest annual performance since 2009.
This surge was driven by global trends including rising gold and silver prices and increased defence spending.
Analyst Clive Black of Shore Capital was scathing about the Chancellor’s record.
He criticised her “dire performance” and questioned the timing of her late November Budget.
“For reasons that rest in lunatic asylums, Rachel Reeves staged a late November Budget right on the cusp of Black Friday, the run-up to which was characterised by somewhat extreme administrative incompetence,” he said.
But Dan Coatsworth, head of markets at investment firm AJ Bell, said: “This is a historic moment and already makes 2026 one of the most significant years for the blue-chip index since its launch in 1984.
“Breaking through the 10,000 level is the best New Year’s present Chancellor Rachel Reeves could want.
“She has been banging the drum about the merits of investing over parking cash in the bank, and the FTSE 100’s achievements just go to show what’s possible when buying UK shares.
“It also proves to cynics that the UK market is not stuck in the mud, and that the US stock market is not the only place to make money.”