FILE PHOTO: British Prime Minister Keir Starmer leaves 10 Downing Street, on the day Chancellor of the Exchequer Rachel Reeves presents the Autumn Budget Statement to Parliament, in London, Britain, November 26, 2025. REUTERS/Toby Melville/File Photo

LONDON, Dec 1 (Reuters) - British Prime Minister Keir Starmer said last week's budget had retained market confidence which was key to providing stability for investors and businesses, and would in time lead to economic growth.

Starmer gave a speech on Monday in which he sought to defend the budget outlined last week by finance minister Rachel Reeves, after criticism that it would hit people with further tax rises and lacked policies which would boost growth.

"The most important things that we can do for growth, the most important things that we can do for business is first to drive inflation down so that interest rates come down further, and the cost of business investment comes down with it," Starmer said.

"And second, to retain market confidence that allows for real economic stability, so that businesses can plan. That is what the country needs most right now."

He also said that he was confident the economy could beat forecasts now that it was on the right path.

"When it comes to economic growth and living standards, we're confident we can beat the forecast," he said.

(Reporting by Sam Tabahriti and Alistair Smout, writing by Sarah Young; editing by Kate Holton)