Rachel Reeves delivers devastating economy blow live on BBC Breakfast

Rachel Reeves has slammed a potential Labour leadership battle, insisting it would plunge the country into chaos. Speaking from outside Downing Street on BBC Breakfast following the news the UK economy grew by a surprising 0.3% in March 2026, the Chancellor said: "Today's numbers show that the economy is growing strongly, and because of that growth, we'll be able to do more to invest in our public services and to support families and businesses with a cost of living.

"But that is only possible because of the economic stability that we have brought back to our economy, and we shouldn't put that at risk by plunging the country into chaos at a time when there is conflict in the world, but also at a time when our plan to grow the economy is starting to bear fruit." The reporter chimed in to clarify her remarks. "So just to be clear, your message to Wes Streeting and others potentially, is that triggering a leadership contest at a time of international turmoil would plunge the UK into chaos," he said.

She responded: "Well, today, there will be numbers also about the NHS performance.

"Because of the additional money, £29billion a year that I've been able to put into the health service as chancellor, means that those waiting lists should continue to fall.

"But that investment in our public services, including our NHS, good jobs and growth in all parts of our country is only possible because of the economic stability that I have returned to the economy.

"If we put that at risk, we put at risk the investment in our public services and also the growth that is necessary to help people with the cost of living and help businesses with the cost of living.

"...Next week, I'll be setting out more detail on how, because of the numbers that we've seen today we'll be able to put more money in to support people, families and businesses with the conflict challenges that we know we're facing," she concluded.

Reeves had earlier taken to X to post about the economic growth writing: "Today’s strong growth figures show the Government has the right economic plan.

"The choices I have made as Chancellor mean our economy is in a stronger position as we deal with the costs of the war in Iran.

"Now is not the time to put our economic stability at risk."