Rachel Reeves received some unexpected good news this morning as figures show the UK economy grew faster than many had predicted. The UK economy grew by 0.5% in February, the Office for National Statistics said. It did not grow at all in January.
The latest data comes a month after figures suggesting Britain’s economy flatlined in January even before conflict flared in the Middle `east, with worries over rising inflation as result of spiking oil prices. Official figures showed zero growth in gross domestic product (GDP) in the first month of 2026, against expectations for output to increase by 0.2%.
At the time, economists warned a prolonged conflict and ongoing spike in oil prices – already above 100 US dollars for the first time in nearly four years – could even send the economy into reverse in 2026.
The January figures followed meagre growth of just 0.1% in the final three months of last year amid budget uncertainty and a subdued performance in December, with growth of 0.1% also in the month of December.
Speaking in Washington on Wednesday, Chancellor Rachel Reeves voiced her concern about Donald Trump’s war on Iran, which she called a mistake.
She said: “We are a net importer of gas which does mean we are impacted by the conflict in the Middle East, which is why I do come with this message loud and clear along with 10 other countries.“Our growth would be higher and inflation lower if this conflict comes to an end and that will only happen with de-escalation.”
