STORY
Rachel Reeves has called for calm in Labour and warned MPs against plunging the party into a leadership election, arguing that political instability could damage the economy just as new figures showed stronger than expected growth.
The Chancellor said the Government should not put economic stability at risk by turning inwards after Labour’s poor local election results. Her intervention came as Sir Keir Starmer continued to face pressure from MPs demanding that he resign or set out a timetable for departure. Reeves said the country needed stability, not “chaos”, and urged the party to focus on governing.
The comments followed figures showing the UK economy grew by 0.3% in March and 0.6% across the first quarter of 2026. Reeves said the figures showed the Government’s economic plan was working, but warned that the recovery remained vulnerable if Labour entered a damaging internal contest.