Reeves welcomes growth figures as former No 10 adviser says taxes will have to rise in budget – UK politics live

The chancellor hailed ‘the potential of the UK economy’ as one official said taxes will go up in the autumn

• UK economy defies gloomy warnings to grow 0.7% in first quarter of year

Good morning. There is some good news for the government this morning. As Richard Partington reports, the UK economy grew by a bigger than forecast 0.7% in the first three months of the year, defying business warnings of a collapse in confidence ahead of Labour’s tax increases and Donald Trump’s sweeping tariffs.

In a statement welcoming the figures, Rachel Reeves, the chancellor, said:

Today’s growth figures show the strength and potential of the UK economy.

In the first three months of the year, the UK economy has grown faster than the US, Canada, France, Italy and Germany.

While the government builds momentum behind growth, the path of public spending is just not credible.

Not to mend creaking local government. Not to tackle rampant crime. Not to meet the modern demands for defence. And certainly not to fill the fiscal hole from sharply cutting immigration.