Chancellor Rachel Reeves has issued a stark warning against plunging the UK into chaos with a Labour leadership battle, as official figures showed the economy grew faster than expected in March. Speaking to the BBC, Reeves argued that the government's plan to grow the economy is starting to bear fruit, and that stability must be maintained amid global conflict and domestic political uncertainty.
Reeves seized on data from the Office for National Statistics showing gross domestic product rose by 0.3% in March, defying economists' forecasts of a 0.2% contraction. She said the figures prove the government has the right economic plan, adding: 'Now is not the time to put our economic stability at risk. To do so would leave families and businesses worse off.'
The chancellor's comments come as health secretary Wes Streeting resigned, but did not trigger a leadership contest against Prime Minister Keir Starmer. British government borrowing costs fell to a three-day low following the resignation, with ten-year gilt yields dropping 5 basis points to 5.01%.
However, economists warned that the growth may be short-lived, as the Iran war pushes up energy prices and disrupts supply chains. Meanwhile, Jaguar Land Rover reported a 99% slump in annual profit to just £14m, hit by US tariffs and a cyber-attack that disrupted factories for months.
In other news, food ingredients firm Tate & Lyle received a takeover approach from US rival Ingredion, valuing the company at around £2.7bn. Across the Atlantic, US initial jobless claims rose by 12,000 to 211,000 last week, though still at historically low levels.
