Chancellor Rachel Reeves has warned that a Labour leadership battle could plunge the country 'into chaos' and threaten the UK's economic recovery, 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. 'We shouldn’t put that at risk by plunging the country into chaos at a time when there is conflict in the world,' she said.
The Office for National Statistics reported GDP grew by 0.3% in March, defying forecasts of a 0.2% contraction. The pick-up in growth was the fastest in a year in the first quarter of 2026, but economists warned that the Iran war could push up energy prices and disrupt supply chains, potentially capping further gains.
Reeves seized on the data as evidence that 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 business worse off.'
