Chancellor Rachel Reeves can be forgiven for tooting her own trumpet this morning, after the UK economy grew faster than forecast in March.
Following the news that GDP rose by 0.3% in March, and by 0.6% in the first quarter of the year, Reeves stated: “Today’s strong growth figures show the government has the right economic plan. The choices I have made as chancellor mean our economy is in a stronger position as we deal with the costs of the war in Iran. Now is not the time to put our economic stability at risk.”
That last sentence sounds like a reproachful glare towards her colleagues who are trying to push the Prime Minister, Keir Starmer, out of Downing Street, which could lead to a change of chancellor too.
Wes Streeting is reportedly preparing to launch a leadership challenge against Keir Starmer, adding further uncertainty to the political landscape. Reeves’ remarks appear aimed at discouraging any moves that might destabilize the government’s economic agenda.
The GDP figures provide a boost for Reeves, who has faced criticism over her handling of the economy. The 0.3% monthly increase exceeded expectations, while the quarterly growth of 0.6% signals a steady recovery. However, the ongoing war in Iran continues to pose risks, and Reeves emphasized the need for fiscal discipline.
Political analysts note that the chancellor’s comments may also be an attempt to shore up her own position amid potential changes in leadership. With a possible challenge to Starmer, the future of the Treasury team could be in flux.
