UK’s ECONOMY expanded in line with expectations in the first quarter, official data showed on Thursday, giving a boost to Keir Starmer as he faces pressure within the Labour Party.
Gross domestic product rose 0.6 per cent in the January-March quarter, compared with a revised 0.2 per cent expansion in the final three months of last year, according to the Office for National Statistics.
The ONS also said the economy grew 0.3 per cent in March, ahead of analysts’ expectations, despite the economic impact of the Middle East war.
“Today’s figures show the government has the right economic plan,” chancellor Rachel Reeves said after the figures were released.
The economy “is in a stronger position as we deal with the costs of the war in Iran”, she added. “Now is not the time to put our economic stability at risk.”
The figures come as Keir Starmer tries to contain a revolt within the Labour Party following heavy losses in local and regional elections last week.
The elections saw gains for the hard-right Reform UK party and the left-wing populist Greens at Labour’s expense.
The results added to pressure on Labour, which has struggled to revive Britain’s economy since winning the general election in July 2024 after raising taxes in its two annual budgets.
Earlier this year, there were signs of improvement, with inflation moving closer to the Bank of England’s two per cent target and unemployment unexpectedly falling in February.
However, rising energy prices linked to the Middle East war, which began with US-Israeli strikes on Iran on February 28, have increased inflationary pressures and could affect growth.
