Reeves touts surprise UK growth as Labour leadership stays intact
Reeves touts surprise UK growth as Labour leadership stays intact
UK GDP rose 0.3% in March, defying forecasts as Reeves argues the right economic plan is paying off, keeping Labour leadership stable amid global tensions.
The chancellor has seized on official figures showing the UK economy was more resilient than feared at the start of the Iran conflict, using the data to argue the government’s economic plan is working and to bolster support for keeping Labour leadership in place. Reeves framed the 0.3% rise in GDP in March as evidence that stability matters and that chaos would damage families and businesses.
Official data showed GDP rose 0.3% in March, beating economists’ expectations of a 0.2% drop. For the first quarter of 2026, growth was 0.6%, making the UK one of the fastest growing economies in the G7 and up 1% on the same quarter last year. Reeves said the figures suggest the government is on the right track to grow the economy and that further steps will be announced next week to support households and firms, with any aid targeted to those most in need.
The comments come amid a leadership contest within Labour, with questions about Keir Starmer’s tenure continuing to roil Westminster. Reeves’ remarks frame stability as the priority while the government continues to push its growth agenda, arguing it is starting to bear fruit even as global tensions persist.
The March GDP reading aligns with surveys showing resilient momentum despite higher fuel costs, underscoring a narrative of a recovering economy even as the world eye Iran war developments. Reeves stressed that now is not the time to risk economic stability by plunging the country into turmoil.
