Sir Keir Starmer has vowed to put more money in Brits’ pockets in his first New Year message as prime minister.

The PM said there is still much more to do in 2025, adding he would “fight for change” which would define “every waking hour of his government”.

He added his Labour administration has begun the “work of change” since winning the general election in July, pointing to an increase in the minimum wage, clean energy projects and NHS investment.

Sir Keir said in a video message: “I know there is still so much more to do and that for many people it’s hard to think about the future when you spend all of your time fighting to get through the week.

“So I want to be clear: until you can look forward and believe in the promise and the prosperity of Britain again, then this Government will fight for you.

“A fight for change that will define this year, next year and, indeed, every waking hour of this Government.”

The optimism comes despite Sir Keir’s faltering start in power. Chancellor Rachel Reeves’ maiden Budget spooked business with a rise in employers’ National Insurance contributions and angered farmers over inheritance tax changes.

The Chancellor’s axing of Winter Fuel Payments for millions and denying compensation to WASPI pension campaigners have also sparked fierce criticism from opposition parties and some voters.

Ministers will no doubt also hope for an improved economic outlook next year as they aim to deliver on Labour’s growth plan. The economy showed no growth in the third quarter of 2024, despite the Government’s ambition to turbo-charge GDP.

Despite the headwinds, Sir Keir said his administration has “a clear plan” for change. This includes 1.5 million new homes; restoring the “dream” of home ownership; children starting school, ready to learn and a “more secure” energy system.

He also vowed to cut waiting lists dramatically, reduce immigration, ensure neighbourhood police tackle anti-social behaviour in every community and “more cash in your pocket, wherever you live”.

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Sir Keir faces a challenging year at home and abroad. Questions remain over when the Government will meet its ambition to spend 2.5% of gross domestic product (GDP) on defence and how it will pursue its net-zero agenda.

May’s local elections in England will indicate how the public feels about Labour after its first few months in charge.

The Prime Minister will also seek to reset the UK’s relationship with the European Union, continue support for Ukraine and handle the return of US President-elect Donald Trump to the White House.

Results from a spending review will come this year. Ms Reeves has ordered departments to make 5% in cuts as she battles to secure the country’s finances.

Sir Keir pointed to the 80th anniversaries of Victory in Europe (VE) Day and Victory over Japan (VJ) Day as providing a chance for the nation to “come together” in 2025.