Chancellor Rachel Reeves has cautioned that “now is not the time” to risk economic stability, amid swirling rumours of a potential leadership challenge against Sir Keir Starmer. Her warning comes despite recent positive economic figures that show the UK economy unexpectedly grew by 0.3 per cent in March and 0.6 per cent in the first quarter of 2026.
Strongest Growth Since Early 2025
The 0.6 per cent quarterly growth marks the strongest performance since the first quarter of 2025. The expansion was largely driven by the services industry, which recorded a 0.8 per cent increase. Manufacturing and construction output also rose during the period, contributing to the overall positive data.
Economists Warn of Unsustainable Pace
However, economists have cautioned that this pace of growth is unlikely to be sustained. They predict a stall for the remainder of the year, citing the ongoing Iran war, rising energy prices, and political uncertainty as key headwinds. Some experts suggest that part of the March growth resulted from “front loading” or stockpiling by businesses and consumers in anticipation of future shortages and price increases.
In a statement, Reeves emphasised the importance of maintaining economic stability, asserting that now is not the time for change that could undermine the progress made. Her comments come as speculation mounts about a possible leadership contest within the Labour Party.
