Chancellor Rachel Reeves plans to assert that Britain's economy has 'beaten the odds' in her upcoming Mansion House address, her third and likely final speech in the role. She is expected to argue that the UK's economic strength is a direct result of her policy decisions, citing increased investment, productivity, and wages.
"Because of the choices I have made, I'm proud to report that the British economy is strong," Reeves is slated to say to an audience of business leaders. She intends to highlight that at the start of the year, Britain experienced the fastest economic growth in the G7, and that borrowing fell to its lowest level in six years. Reeves will also mention a decrease in waiting lists and a target to lift half a million children out of poverty by the end of the parliamentary term.
Reeves plans to emphasize the importance of maintaining fiscal credibility and the stability she believes has been built, warning against deviating from her established financial rules. She will advocate for an 'active and strategic state' that empowers regions, supports British businesses, and deepens ties with the European Union, calling the financial services sector the 'crown jewel' of the UK economy.
The Chancellor's remarks come as oil prices surge due to renewed instability in the Middle East. Official figures released last month indicated a 0.8 percent drop in household disposable incomes, adjusted for inflation, during the first quarter of the year. This metric, a key target for Labour leader Keir Starmer, has now fallen in four of the last five quarters and is lower than when the current government took office. Data expected on Thursday is also projected to show a stagnation in GDP growth for another month.
Reeves, described as the biggest tax-raising Chancellor in at least 50 years, has expressed optimism about the UK's economic future. She has publicly supported Andy Burnham, the former Greater Manchester Mayor, to succeed Starmer as Prime Minister, with allies reportedly having urged Burnham to keep Reeves in her post. Her planned address at Mansion House is widely anticipated to be her last as Chancellor.
