Britain’s economy is showing signs of recovery following a sluggish end to 2024, according to Finance Minister Rachel Reeves, though she acknowledged that many citizens remain dissatisfied

with the pace of change.

Speaking at a Confederation of British Industry (CBI) dinner on Thursday, Reeves pointed to encouraging indicators, including a 0.7% GDP growth in the first quarter of 2025 — the strongest performance among G7 nations — and recent upbeat business surveys.

“These are positive developments and suggest we are starting to turn the corner,” Reeves said.

Purchasing managers’ indexes published earlier this week reflected a rebound in business activity after a dip in April, largely caused by the economic shock of tariffs introduced by U.S. President Donald Trump.

Still, Reeves acknowledged broader discontent across major economies. Reflecting on a recent G7 finance ministers’ meeting in Canada, she said, “None of our countries are growing as fast as we used to or as fast as we need to. Living standards are stagnant, and people are growing restless.”

Reeves is preparing to unveil a new spending plan on Wednesday, which will outline departmental budgets through 2029, spanning the rest of the Labour Party’s current term. She committed to addressing high energy costs and said the upcoming review would include more public investment in energy infrastructure.

Responding to questions about tax policy, Reeves reiterated her stance against repeating the significant tax hikes from her October 2024 budget but stopped short of outlining detailed plans.

“I can’t deliver the next four years of budgets tonight,” she said, “but I can promise we won’t see a repeat of last year’s budget.” Photo by Lauren Hurley / No 10 Downing Street, Wikimedia commons.