GDP development an ‘encouraging sign but we are not complacent’, says Reeves – UK politics dwell

Liberal Democrat spokesperson Munira Wilson was requested this morning about how nicely the social gathering felt the federal government had been dealing with the imposition of tariffs on the UK and the broader international financial system.

She was challenged by LBC Information presenter Vanessa Baffoe whether or not, given Donald Trump’s sudden climbdown on a number of the greater threatened tariffs, the federal government had been proper to delay any speedy retaliation. Wilson informed listeners:

Nicely, the Liberal Democrats have mentioned all alongside, you’ve acquired to face as much as a bully. So I feel what we wish to see the prime minister doing is constructing an financial coalition of the keen, working with our allies to spice up commerce elsewhere, while the US has confirmed itself an unreliable companion

And that’s why Liberal Democrats have been persistently calling for the UK Authorities to work for a stronger and higher commerce cope with the EU, to chop purple tape for our companies, in order that we will be exporting and boosting development in our financial system right here with the EU.

The care minister has defended the federal government’s cautious response to developments in international commerce after the sweeping imposition of tariffs by the US administration in Washington.

Stephen Kinnock mentioned “If we were to just jump in one direction or the other every time there’s a new development, we would be jumping around all over the place. I don’t think that that’s going to be in the interest of our economy or of our national security or of our business community.”

Kinnock mentioned he understood that the media “are keen for us to give a running commentary on what president Trump is doing” however argued that “we feel that it’s much better to show that we are acting in the national interest, that we are continuing to be very vigilant.”

He reiterated that “the prime minister has said all options are on the table. And if it does come to the point where retaliation is needed, then we are, of course, ready to do that.”

On Sky Information, enterprise correspondent Gurpreet Narwan dsescribed the financial information as “welcome” for the federal government, however cautioned that this could be “the last growth we see.”

She informed viewers that companies within the UK had confronted “crippling tax rises, those national insurance contribution increases coming down the road, [and] confidence is falling” including that “this feels a bit kind of redundant already, doesn’t it? Because of the week we’ve had, it might be the last growth we see now that Donald Trump has imposed sweeping tariffs on countries across the world.”

She continued “Businesses might be nervous about investing, for example, about hiring, and they still don’t know what Donald Trump is exactly up to. So overall, the outlook for the UK economy is pretty poor because of what Donald Trump is doing in the US.”

On the media spherical at the moment for the Conservatives was shadow minister for the atmosphere Robbie Moore, who mentioned “of course, we welcome any growth figures” when requested about February’s GDP figures.

Nevertheless, he expressed concern in regards to the wider path of the financial system, telling Sky Information viewers:

That is only for February, and we all know that the OBR gave an enormous quantity of warning as we head into this yr, projecting a discount in development. And likewise that is earlier than all of these punitive tax will increase kick on this month, like the roles tax, employers nationwide insurance coverage will increase, minimal wage will increase, enterprise charges will increase.

So after all, we welcome it, however primarily based on a number of the conversations that I used to be having actually simply yesterday with manufacturing and engineering companies in my constituency of Keighley, their enterprise certainty could be very, very low.

Jamie Grierson is a senior information reporter for the Guardian

A senior financial adviser to Donald Trump has mentioned it will take “an extraordinary deal” for any nation, together with the UK, to enhance on the 10% tariff price the US has imposed nearly worldwide, pouring chilly water on Downing Avenue’s hopes for a breakthrough.

Talking to CNBC, Kevin Hassett, an economist and adviser to Trump, mentioned any deal that may persuade the president to go under that may should be “extraordinary”.

“I think everybody expects that the 10% baseline tariff is going to be the baseline,” he mentioned. “It is going to take some kind of extraordinary deal for the president to go below there.”

Whereas the UK is urgent for a discount in tariffs by way of a commerce deal, Downing Avenue has harassed all through that the world has modified and the UK should additionally pursue different avenues for financial development and agreements with different companions.

Learn extra from Jamie Grierson right here: Trump’s financial adviser dampens Starmer’s hopes of tariffs aid

Talking on LBC Information, Liberal Democrat schooling spokesperson Munira Wilson welcomed what she described as “these green shoots of recovery” after GDP rose 0.5% in February, however mentioned development “risks being choked off because of the jobs tax”, in a reference to rising employer nationwide insurance coverage contributions.

Wilson warned that “additional cost, both in terms of national insurance rises and with business rates increasing on our high streets, is stifling growth. And that means less money going to the chancellor that can then be spent on rebuilding our broken public services, like our schools and hospitals.”

Responding to information that the financial system had grown by 0.5%, shadow chancellor Mel Stride mentioned “Since coming to office, Labour’s choices have killed growth stone dead.”

The shadow chancellor asserted that there was “still a long way to go to recover.”

Referring to chancellor Rachel Reeves’ spring assertion, he mentioned “At the emergency budget, the forecasts for growth, inflation and borrowing all moved in the wrong direction because of Labour’s decisions. Hardworking families deserve better than a Government crowing about sluggish growth whilst they will be £3,500 worse off because of the jobs tax.”

Chancellor Rachel Reeves has responded to higher than anticipated month-to-month GDP figures for February. In a press release, she mentioned:

These development figures are an encouraging signal, however we’re not complacent. The world has modified and we now have witnessed that change in current weeks.

I do know that is an anxious time for households who’re apprehensive about the price of residing and British companies who’re apprehensive about what this variation means for them.

This authorities will stay pragmatic and cool-headed as we search to safe the very best cope with the US that’s in our nationwide curiosity.

On the similar time, we might be relentless in our work to kickstart financial development, present safety for working individuals and renewal for Britain.

Phillip Inman is an economics author for the Guardian

The UK financial system unexpectedly expanded by 0.5% in February, based on official figures, in a lift for Rachel Reeves earlier than an anticipated downturn triggered by Donald Trump’s tariff battle.

Reversing a modest fall in January, the rise in gross home product in February might mark the final interval of growth earlier than the specter of a worldwide commerce battle dampens enterprise funding and client spending.

A ballot of economists had anticipated the financial system to develop by 0.1% in February.

This month, customers face inflation-busting utility invoice and council tax will increase whereas employers should address £25bn of tax rises.

Authorities critics are anticipated to accuse ministers of presiding over a protracted interval of stagnation induced by final October’s tax-rising funds.

Care minister Stephen Kinnock has mentioned that greater than anticipated GDP development figures for February are “the dividend from a government that is stable”.

Talking on Sky Information, the Labour MP for Aberafan Maesteg mentioned:

I feel what we’re seeing is the dividend from a authorities that’s secure, is targeted on our development mission, and is totally dedicated to supporting companies throughout the nation when it comes to getting funding in and giving them the knowledge they want.

He continued, telling viewers that the federal government was “freeing up planning so that can unleash businesses to invest,” and mentioned that Labour had been introducing “new rights for employees, which will, I think, really help to get a better relationship between employers and employees going across the economy.”

He additionally boasted of Labour’s will increase to minimal wage charges, saying:

We’re seeing the rise within the residing wage, which I feel can be serving to to place extra money into the financial system, giving customers extra confidence. That combination of provide aspect and demand aspect measures are actually serving to to construct an financial system that’s match for the longer term.

Good morning, and welcome to our rolling UK political protection for Friday. Listed below are your headlines …

• The UK financial system unexpectedly expanded by 0.5% in February, based on official figures, in a lift for Rachel Reeves earlier than an anticipated downturn triggered by Donald Trump’s tariff battle

• The chancellor mentioned “These growth figures are an encouraging sign, but we are not complacent”. Shadow chancellor Mel Stride mentioned the rise confirmed that development had been killed “stone dead”

• Keir Starmer has mentioned he has nonetheless not spoken to the US president since he introduced in commerce tariffs which have destabilised the worldwide financial system

• A report high quality over freedom of speech breaches on the College of Sussex has sparked wider anxiousness within the sector

• The UK and Germany are co-chairing a gathering in Brussels over assist for Ukraine. The federal government has introduced a £450m “surge” of army assist to Ukraine

Parliament is in recess, however there might be some native campaigning for the council elections in England scheduled for subsequent month, together with Liberal Democrat chief Ed Davey visiting the River Severn in Shrewsbury. The funeral of former Scottish authorities minister Christina McKelvie is because of happen in Glasgow.

It’s Martin Belam with you at the moment. You’ll be able to attain me at martin.belam@theguardian.com in case you have noticed typos or what you contemplate to be errors or omissions, or you’ve questions.