The Chancellor was blasted by financial experts who said she had nothing to do with the milestone.
The FTSE 100 has surpassed 10,000 points for the first time, bringing some welcome news for investors and pension holders. The milestone came at the start of the New Year’s trading period and was welcomed by many in the financial sector. But the reaction inside Westminster quickly turned political.
Chancellor Rachel Reeves said the record high was “a vote of confidence in Britain’s economy”. Her comment came soon after the index moved past the 10,000 mark, but it prompted a wave of criticism from economists and opposition figures. Several experts argued that the recent rise has been driven by global trends rather than the strength of the UK economy.
Chancellor Reeves said the record high was ‘a vote of confidence in Britain’s economy’ (Image: Getty)
The FTSE 100 includes many multinational companies, which earn most of their money outside Britain, meaning the index often moves in response to worldwide events.
Some pointed out that other indicators, which reflect conditions inside the UK, were far less positive.
The FTSE 250, which tracks more domestically focused firms, has lagged behind.
Recent official data has also highlighted pressure on manufacturing and concerns that retailers had a difficult Christmas period, the Daily Mail reported
Shadow Chancellor Sir Mel Stride said: “Unemployment is rising, retail is struggling, business confidence is at record lows and growth is flat – this is not a moment for self-congratulation.”
Conservative business spokesman Andrew Griffith went further, saying: “Rachel Reeves is delusional and clutching at straws when all the real economy signs are that jobs are being cut, retail and hospitality sectors are hurting and that confidence is on its knees.
“A new year walk down any high street would soon put her right.”
Economist Julian Jessop from the Institute of Economic Affairs also criticised the Chancellor’s statements.
He said: “This is a foolish thing for any Chancellor to say. The FTSE 100 is a poor barometer of confidence in the economy.”
The FTSE 100 has passed 10,000 points for the first time (Image: Getty)
The expert added that the index has benefited from factors such as rising precious metal prices and global defence spending.
Clive Black, an analyst at Shore Capital, attacked what he called Ms Reeves’s “dire performance”, adding: “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.”
The FTSE rose nearly 22% in 2025, its best year since 2009.
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