The UK's economic plan was right before this conflict, it remains
the right approach now, and we will act in the national interest
in the future the Chancellor is expected to tell the Commons
today.
- In a world more uncertain than ever, the Chancellor is
expected to set out the UK's economic plan is the right one and
continues to be right one “to build a Britain that is
prepared for what comes next”, in an update to the House of
Commons today.
- Reeves is expected to reemphasise that she shares the British
people's anger at rising costs at the fuel pumps and daily
essentials, and the government will continue to act and be
responsive to a changing world and responsible in the national
interest.
- From Brexit to the mini-Budget, the response from Westminster
has always been the same - manage the crisis, apply a temporary
fix and then restore the status quo.
- But this government, she will say, she will not be
rushed into knee jerk reactions to the conflict that could make
families worse off by pushing up inflation, instead prioritising
keeping costs down for everyone, and supporting those who most
need it. The Government will instead forge a new path for
Britain – one that strengthens our energy, defence and economic
security in a new era.
- The Chancellor will outline how the Government is backing
businesses across the UK, through last week's
expansion of the British Industry Competitiveness Scheme,
cutting energy bills by 25% for ten thousand British
manufacturers.
- This comes as the IMF backed the UK's progress on reducing
the budget deficit - falling from 6.1% GDP in 2024 to 5.4% in
2025 - the largest reduction in its deficit of any G7 country
over the next five years. The S&P also judges the
UK is better placed to weather an oil price shock than in the
past, reflecting stronger 2025 growth and the increased fiscal
headroom created at Budget 2025.
- The Chancellor is continuing to lead calls for deescalation.
This includes a recent joint statement delivered in partnership
with finance ministers from Australia, Japan, Sweden,
Netherlands, Finland, Spain, Norway, Ireland, Poland, and New
Zealand calling for a “coordinated, responsible and responsive”
approach to the economic consequences of the conflict.
