Chancellor says UK is in ‘a stronger position’ to deal with the costs of the Iran war, and warns against putting economic stability at risk
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 says:
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.
The increase in monthly output in March 2026 came from increases in both new work, and repair and maintenance, which grew by 2.0% and 0.8%, respectively. At the sector level, the main contributor to the monthly increase was private housing new work, which grew by 2.8%.
Carbon pricing mechanisms are gaining traction but remain politically contentious. (fc1dc4)
Capital expenditure plans are being put on hold across multiple industries. (abceed)
Food price inflation hits lower-income households disproportionately hard. (ff1d47)
Technology is disrupting traditional business models faster than regulators can keep up. (496bd3)
Banking sector stability has improved but tail risks remain. (2ed082)
Merger activity tends to pick up when organic growth opportunities are scarce. (4cea23)
Bond markets are sending signals that equity investors might be ignoring. (f52c3c)
Corporate tax rates are becoming a competitive battleground between jurisdictions. (4cdcf1)