Well done me! Rachel Reeves to boast about getting the economy growing in 'goodbye' speech… as oil prices surge and household incomes fall

By JAMES TAPSFIELD, UK POLITICAL EDITOR Published: 08:35, 14 July 2026 | Updated: 08:45, 14 July 2026 Rachel Reeves will boast that Britain's economy has 'beaten the odds' in a 'goodbye' speech as Chancellor tonight. Ms Reeves will argue that UK plc is 'strong' because of the choices she has made as she delivers her third, and almost certainly last, address at the Mansion House. Insisting that the Government had made 'huge strides', the Cabinet minister is to argue that 'investment is up, productivity is up, and wages are up'. But the intervention comes as oil prices surge again on renewed chaos in the Middle East. Official figures last month showed that disposable incomes of households tumbled 0.8 per cent in the first quarter of the year, accounting for inflation. The RHDI per head metric - explicitly targeted by Keir Starmer - has now dropped in four of the last five quarters and is lower than when Labour started in power.   And data due on Thursday are expected to show GDP stagnating for another month.  Rahel Reeves will argue that UK plc is 'strong' because of the choices she has made as she delivers her third, and almost certainly last, address at the Mansion House Official figures last month showed that household incomes tumbled 0.8 per cent in the first quarter of the year, accounting for inflation Ms Reeves - the biggest tax-raising Chancellor in at least 50 years - is expected to argue that the UK must 'maintain the credibility we have earned' in a warning about sticking to her fiscal rules. She will tell an audience of business leaders the Government made 'huge strides in delivering on the promise of change'. 'Because of the choices I have made, I'm proud to report that the British economy is strong,' the Chancellor will say. 'At the start of this year Britain had the fastest economic growth in the G7. Last year, borrowing fell from 5.2 per cent to 4.3 per cent, its lowest level in six years. 'Investment is up, productivity is up, and wages are up too. 'Waiting lists are falling faster than at any time in the last 17 years and half a million children will be lifted out of poverty by the end of this Parliament.' Ms Reeves will say she has 'always been an optimist about the future of our economy and our country, and I remain an optimist for what is to come'. 'This Government has made huge strides in delivering on the promise of change,' she is expected to say. 'Fixing the foundations, restoring economic stability, and proving our capacity to deliver radical change. 'That change is only possible if we maintain the credibility that we have earned, and the stability that we have built, with growth and opportunity in every town, city and region of the UK.' She will back Mr Burnham's focus on devolution, arguing that an 'active and strategic state' must step up by 'empowering our regions, backing British business and deepening our relationship with the EU'. Allies of the Chancellor had mounted a campaign urging Andy Burnham (pictured) to keep her in post when he takes over from Sir Keir on Monday  'I have always been a firm believer that the success of our world-leading financial services sector is good for the whole of the UK,' Ms Reeves will say. 'Financial services remains the crown jewel in the UK economy and a shining example of our potential as a nation. 'Realising that potential entails choices.' Allies of the Chancellor had mounted a campaign urging Mr Burnham to keep her in post when he takes over from Sir Keir on Monday. But that looks to have failed.  Ms Reeves has enthusiastically backed the former Greater Manchester Mayor for PM saying he will be 'great' in No10. She skipped Sir Keir resignation statement in Downing Street last month, but made an awkward appearance in a 'mass selfie' of Labour MPs with Mr Burnham the same afternoon.