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The Guardian World1 min read
Reeves says ‘if economy ain’t broke, don’t fix it’ - as fight to keep her job goes on
TL;DR
Rachel Reeves emphasizes that with the UK economy growing by 0.6% in early 2026, now is not the time for risky political changes. She asserts that the government's economic plan is working and aims to build a stronger, more resilient economy.
Key points
- UK economy grew by 0.6% in early 2026
- March growth defied predictions of a slump
- Reeves argues against risky political changes
The message from Rachel Reeves is clear. After Britain’s economy defied the predictions for a slump in March, despite the fallout from the Iran war, why put things at risk with a roll of the dice in domestic politics?
Responding to bumper growth of 0.3% in March – much stronger than City economists’ forecasts for a 0.2% contraction – the chancellor said the figures showed she had the right economic plan, in a comment laced with subtext.
Over the first three months of 2026, the economy grew by 0.6%, up sharply from growth of 0.1% in the final three months of last year. At that pace Britain is now the fastest growing economy in the G7.
“Now is not the time to put our economic stability at risk. To do so would leave families and business worse off. Instead, this government is getting on with the job of building an economy that is stronger, more resilient, and prepared for the future,” Reeves said.
The fighting talk could easily be directed at Labour’s external critics. After Keir Starmer’s two years in power, the government has struggled to show much progress on its top priority of growing the economy.
However, the message also works for an internal audience. On another dramatic day in Westminster, as Wes Streeting and Angela Rayner prepare leadership bids, the undertone is none too subtle: if it ain’t broke, why fix it?
For Reeves, the progress in the first quarter could bolster her case to remain as chancellor with whoever occupies No 10 after the dust settles on Labour infighting. The talk among City bond traders reflects this, in the anticipation that Reeves’s reputation for fiscal prudence could help to calm a storm in the gilt market.
However, despite a bumper first quarter, the pressure on Reeves and Labour is unlikely to abate.
For several years the UK has recorded bumper growth in the first quarter, only to see activity fizzle out as the year progresses. Most economists predict a far weaker performance, over the second half of the year – with several warning that the fallout from the Middle East conflict .
Q&A
What did Rachel Reeves say about the UK economy's growth in March 2026?
Rachel Reeves stated that the UK's economy grew by 0.3% in March 2026, contrary to predictions of a slump, indicating her economic plan is effective.
How does the UK's economic growth compare to other G7 countries?
The UK is currently the fastest growing economy in the G7, with a growth rate of 0.6% over the first three months of 2026.
What are the implications of Reeves' statement on economic stability?
Reeves warned that risking economic stability could leave families and businesses worse off, emphasizing the need for a strong and resilient economy.
