UK economy starts year with solid growth in boost to Starmer

UK economy starts year with solid growth in boost to Starmer

The figures come as Keir Starmer battles to face down a revolt within his Labour Party in the wake of heavy defeats in local and regional elections last week.

In this video grab taken from footage broadcast by the UK Parliamentary Recording Unit (PRU) via the Parliament TV website on May 13, 2026, Britain's Prime Minister Keir Starmer speaks during a debate on the King's Speech. (Photo by PRU / AFP) / RESTRICTED TO EDITORIAL USE - NO USE FOR ENTERTAINMENT, SATIRICAL, ADVERTISING PURPOSES - MANDATORY CREDIT " AFP PHOTO / PRU "
Keir Starmer speaks during a debate in Parliament, as stronger economic figures bolster his fight to stay in office. (AFP pic)
LONDON:
Britain’s economy expanded in line with expectations in the first quarter, official data showed Thursday, offering a boost to Keir Starmer as he fights to remain prime minister.

Gross domestic product rose 0.6% in the January-March period, up from a revised expansion of 0.2% in the final three months of last year, the Office for National Statistics said.

It added that GDP grew 0.3% in March alone, beating analysts’ expectations, despite the economic fallout from the Middle East war.

“Today’s figures show the government has the right economic plan,” finance minister Rachel Reeves said after the data release.

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 Starmer battles to face down a revolt within his Labour Party in the wake of heavy defeats in local and regional elections last week.

The elections saw strong gains for the hard-right Reform UK party and the left-wing populist Greens, at Labour’s expense.

The results capped a difficult few months for Labour, which has struggled to revive Britain’s economy since winning a general election in July 2024, having raised taxes in its two annual budgets.

There were signs of progress earlier in the year, with inflation easing towards the Bank of England’s two-percent target and unemployment unexpectedly falling in February.

But rising energy prices stemming from Middle East war, which began with US-Israeli strikes on Iran on February 28, have reignited inflationary pressures and threaten to derail growth.

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