Reeves warns against risking economic stability with leadership battle, after UK growth beats forecasts in March – as it happened

Chancellor warns against plunging the country ‘into chaos’ with leadership battle, after economy grows at fastest pace in a year in Q1 2026 UK economy records surprise 0.3% growth despite Iran war Analysis: Reeves says ‘if economy ain’t broke, don’t fix it’ Chancellor Rachel Reeves also warned this morning that a leadership battle could plunge the UK ‘into chaos’, and threaten its economic recovery. Asked by the BBC about the possibility that health secretary Wes Streeting triggers a Labour party leadership race, Reeves argues that the government will be able to invest more in public services and help households and businesses because of the pick-up in growth. But, she argues, that’s only possible because of the economic stability the government has brought back. double quotation markWe shouldn’t put that at risk by plunging the country into chaos at a time when there is conflict in the world, but also at a time when our plan to grow the economy is starting to bear fruit. The chancellor has seized on official figures showing the UK economy was more resilient than feared at the start of the Iran war as evidence to keep the current Labour leadership in place. Rach