Rachel Reeves will defend her record as Chancellor, arguing that Britain's economy has 'beaten the odds' under her stewardship, in a speech ahead of Andy Burnham's expected appointment as prime minister. The Chancellor is expected to tell business leaders that the UK must 'maintain the credibility we have earned' to ensure any new administration retains market support.
Economic achievements highlighted
In what is likely her third and final Mansion House speech as Chancellor, Reeves will claim: 'Because of the choices I have made, I'm proud to report that the British economy is strong.' She will cite that at the start of the year, Britain had the fastest economic growth in the G7, borrowing fell from 5.2% to 4.3% last year (its lowest in six years), and investment, productivity, and wages are up. She will also note that waiting lists are falling faster than in 17 years and half a million children will be lifted out of poverty by the end of this Parliament.
Challenges ahead
The UK economy is expected to have remained stagnant for another month, with some industries under pressure and the ongoing conflict in Iran hampering growth. The Office for National Statistics is set to publish May's GDP figures on Thursday amid global turbulence. Despite this, Reeves will express optimism about the future, stating: 'This Government has made huge strides in delivering on the promise of change. Fixing the foundations, restoring economic stability, and proving our capacity to deliver radical change.'
Support for Burnham's devolution agenda
Reeves will back Andy Burnham's focus on devolution, arguing that an 'active and strategic state' must empower regions, back British business, and deepen ties with the EU. She will say: 'Financial services remains the crown jewel in the UK economy and a shining example of our potential as a nation.' Reeves appears to have conceded she will not remain as Chancellor under Burnham, who is the only candidate in the Labour leadership process and expected to take over from Sir Keir Starmer on July 20.
