Chancellor Rachel Reeves plans to highlight economic growth in her upcoming farewell address at the Mansion House, asserting that Britain's economy is strong due to her policy decisions. This address will be her third and likely final speech in the role.
Reeves is expected to state that the government has made "huge strides" and that "investment is up, productivity is up, and wages are up." She will also mention that Britain experienced the fastest economic growth in the G7 at the start of the year and that borrowing fell to its lowest level in six years in the previous year.
"Because of the choices I have made, I'm proud to report that the British economy is strong," Reeves is anticipated to say. "At the start of this year Britain had the fastest economic growth in the G7. Last year, borrowing fell from 5.2 per cent to 4.3 per cent, its lowest level in six years. Investment is up, productivity is up, and wages are up too."
She is also set to claim that waiting lists are falling faster than in the last 17 years and that half a million children will be lifted out of poverty by the end of the current Parliament. Reeves will express optimism for the country's future, stating, "I have always been an optimist about the future of our economy and our country, and I remain an optimist for what is to come."
Reeves will emphasize the need to "maintain the credibility we have earned" and warn against deviating from her fiscal rules. She plans to discuss how the government has worked to restore economic stability and deliver "radical change."
"This Government has made huge strides in delivering on the promise of change," she is expected to say. "Fixing the foundations, restoring economic stability, and proving our capacity to deliver radical change. That change is only possible if we maintain the credibility that we have earned, and the stability that we have built, with growth and opportunity in every town, city and region of the UK."
The Chancellor will also advocate for devolution and an "active and strategic state" that empowers regions and supports British businesses. She plans to emphasize deepening the relationship with the EU, noting that the success of the UK's financial services sector is beneficial for the entire nation.
This intervention comes as oil prices have surged amid renewed instability in the Middle East. Official figures released last month indicated that household disposable incomes fell by 0.8 percent in the first quarter of the year, after accounting for inflation. The metric for real household disposable income per head has now decreased in four of the last five quarters and is lower than when the current Labour government took office. Data expected on Thursday are also projected to show GDP growth stagnating for another month.
Reeves, described as the biggest tax-raising Chancellor in at least 50 years, is anticipated to argue that the UK must "maintain the credibility we have earned." She has enthusiastically supported Mayor of Greater Manchester, who is expected to succeed Keir Starmer as party leader.