By JOHN-PAUL FORD ROJAS DEPUTY BUSINESS EDITOR

Published: 22:34 GMT, 2 January 2026 | Updated: 23:00 GMT, 2 January 2026

Rachel Reeves was branded 'delusional' on Friday for trying to take credit after the FTSE 100 hit 10,000 points for the first time.

In a boost for Britain's savers and investors – and a promising start for New Year trading – London's leading share index soared above the landmark figure.

The beleaguered Chancellor was quick to try to turn the moment to her advantage, saying: 'The FTSE 100 breaking through 10,000 points for the first time is a vote of confidence in Britain's economy.'

But her 'foolish' claim was ridiculed by experts, who said recent gains in the FTSE 100 – an index that tracks the performance of the London Stock Exchange's biggest 100 firms, which draw sales and profit from around the world – had little to do with Britain's economy.

The second-string FTSE 250, which is more closely linked to the UK, has underperformed. 

On top of dismal official data about the state of the economy in recent weeks, Ms Reeves' statement ignored further signs on Friday of Labour's botched handling of the economy, with figures showing manufacturing under strain and growing fears that UK high street retailers struggled over the festive season.

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 said: '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.'

Chancellor Rachel Reeves during a visit to the Calthorpe Community Gardens on December 18, 2025

A person holding a phone which shows the London Stock Exchange website

The FTSE had a bumper 2025, rising by nearly 22 per cent, the biggest increase since 2009. 

But that was rooted in global trends such as the rising price of gold and silver and defence spending.

Economist Julian Jessop, of the Institute of Economic Affairs think-tank, said: 'This is a foolish thing for any Chancellor to say. The FTSE 100 is... a poor barometer of confidence in the economy.'

Clive Black, an analyst at the broker Shore Capital, criticised Ms Reeves' '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.'