Key events
Stride: 0.5% GDP rise shows Labour have ‘killed growth stone dead’
Responding to news that the economy had grown by 0.5%, shadow chancellor Mel Stride said “Since coming to office, Labour’s choices have killed growth stone dead.”
The shadow chancellor asserted that there was “still a long way to go to recover.”
Referring to chancellor Rachel Reeves’ spring statement, he said “At the emergency budget, the forecasts for growth, inflation and borrowing all moved in the wrong direction because of Labour’s decisions. Hardworking families deserve better than a Government crowing about sluggish growth whilst they will be £3,500 worse off because of the jobs tax.”
Reeves: GDP growth is ‘encouraging sign, but we are not complacent’
Chancellor Rachel Reeves has responded to better than expected monthly GDP figures for February. In a statement, she said:
These growth figures are an encouraging sign, but we are not complacent. The world has changed and we have witnessed that change in recent weeks.
I know this is an anxious time for families who are worried about the cost of living and British businesses who are worried about what this change means for them.
This government will remain pragmatic and cool-headed as we seek to secure the best deal with the US that is in our national interest.
At the same time, we will be relentless in our work to kickstart economic growth, provide security for working people and renewal for Britain.
UK economy grows by 0.5% but tariff war impact yet to come
Phillip Inman
Phillip Inman is an economics writer for the Guardian
The UK economy unexpectedly expanded by 0.5% in February, according to official figures, in a boost for Rachel Reeves before an expected downturn triggered by Donald Trump’s tariff war.
Reversing a modest fall in January, the increase in gross domestic product in February could mark the last period of expansion before the threat of a global trade war dampens business investment and consumer spending.
A poll of economists had expected the economy to grow by 0.1% in February.
This month, consumers face inflation-busting utility bill and council tax increases while employers must cope with £25bn of tax rises.
Government critics are expected to accuse ministers of presiding over a long period of stagnation induced by last October’s tax-rising budget.
Kinnock: growth figures show ‘the dividend from a government that is stable’
Care minister Stephen Kinnock has said that higher than expected GDP growth figures for February are “the dividend from a government that is stable”.
Speaking on Sky News, the Labour MP for Aberafan Maesteg said:
I think what we’re seeing is the dividend from a government that is stable, is focused on our growth mission, and is absolutely committed to supporting businesses across the country in terms of getting investment in and giving them the certainty they need.
He continued, telling viewers that the government was “freeing up planning so that can unleash businesses to invest,” and said that Labour were introducing “new rights for employees, which will, I think, really help to get a better relationship between employers and employees going across the economy.”
He also boasted of Labour’s increases to minimum wage rates, saying:
We’re seeing the rise in the living wage, which I think is also helping to put more money into the economy, giving consumers more confidence. That mixture of supply side and demand side measures are really helping to build an economy that is fit for the future.
Welcome and opening summary …
Good morning, and welcome to our rolling UK political coverage for Friday. Here are your headlines …
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The UK economy unexpectedly expanded by 0.5% in February, according to official figures, in a boost for Rachel Reeves before an expected downturn triggered by Donald Trump’s tariff war
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The chancellor said “These growth figures are an encouraging sign, but we are not complacent”. Shadow chancellor Mel Stride said the rise showed that growth had been killed “stone dead”
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Keir Starmer has said he has still not spoken to the US president since he brought in trade tariffs which have destabilised the global economy
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A record fine over freedom of speech breaches at the University of Sussex has sparked wider anxiety in the sector
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The UK and Germany are co-chairing a meeting in Brussels over support for Ukraine. The government has announced a £450m “surge” of military support to Ukraine
Parliament is in recess, but there will be some local campaigning for the council elections in England scheduled for next month, including Liberal Democrat leader Ed Davey visiting the River Severn in Shrewsbury. The funeral of former Scottish government minister Christina McKelvie is due to take place in Glasgow.
It is Martin Belam with you today. You can reach me at [email protected] if you have spotted typos or what you consider to be errors or omissions, or you have questions.
