![\"Chancellor](\"https:\/\/www.newsbeep.com\/uk\/wp-content\/uploads\/2026\/04\/Chancellor-Rachel-Reeves-is-in-charge-of-the-UK-economy.jpg\")
\t\tRachel Reeves oversaw higher growth in the UK economy than expected.\t<\/p>\n\t\t\tTuesday 30 June 2026 7:31 am
\n\t\t\t\t\t\u00a0|\u00a0\u00a0Updated:\u00a0<\/p>\n
\t\t\tTuesday 30 June 2026 7:32 am\n\t<\/p>\n
\t\tRachel Reeves oversaw higher growth in the UK economy than expected.\t<\/p>\n
The UK economy grew by 0.6 per cent in the first quarter of the year, the Office for National Statistics has confirmed, yet the final figure for growth last year was revised down slightly.<\/p>\n
The ONS said on Tuesday that the UK economy grew at a faster pace than many had expected at the beginning of the year, with GDP rising by 0.6 per cent.\u00a0<\/p>\n
Real GDP per head increased by 0.6 per cent in the first quarter of the year. <\/p>\n
Firms rushed to stockpile goods while activity rose rapidly just as tensions in Venezuela and the Middle East flared up, according to official figures.\u00a0<\/p>\n
The figures may be bittersweet for Chancellor Rachel Reeves, who is expected to be sacked from her position as Andy Burnham<\/a> takes to Number 10 in mid-July, despite overseeing a growth spurt in the UK.<\/p>\n The UK economy declined<\/a> by 0.1 per cent in April, the second month of the Iran war, the ONS said earlier this month. <\/p>\n The ONS also said growth in 2025 was slightly lower than previously thought at 1.3 per cent rather than 1.4 per cent.<\/p>\n Liz McKeown, director of economic statistics at the ONS, said: \u201cServices were the main driver of growth in the latest quarter, with strengths in computer programming, wholesale and advertising only offset by falls in rental companies and recruitment agencies.\u201d<\/p>\n While the ONS said growth was 0.6 per cent, business investment came to around 0.9 per cent in the first quarter of the year, which was slightly higher than expected.<\/p>\n \t\t\t\t\tRead more<\/p>\n \t\t\tUK economy falters as deeper damage to growth to come<\/a><\/p>\n The current account for trade also slipped deeper into negative territory as the balance was \u2013\u00a322.2bn. <\/p>\n Burnham\u2019s vision for UK economy<\/p>\n City economists<\/a> have warned that international trade disruption caused by the Iran war could damage the UK economy\u2019s growth by up to around 0.3 percentage points while inflation could stay above three per cent for the rest of the year.\u00a0<\/p>\n It leaves an incoming Prime Minister Burnham with a difficult in-tray<\/a> despite a broad promise to oversee the biggest transformation of British politics in a lifetime.\u00a0<\/p>\n