The UK economy's resilience has been centre stage as Chancellor Rachel Reeves delivered her third Mansion House speech on 14 July 2026, marking two years since her government took office. With the country's economic growth surpassing that of its G7 peers – at a record 2.5% in early 2026 – Ms Reeves asserts that her government has steered Britain towards a more robust financial footing.
The Chancellor cited key indicators supporting this assertion: last year's public borrowing stood at 4.2% of GDP, the lowest level in six years; investment has increased, driven by a 12% jump in business spending; and productivity growth is on the rise, with wages outpacing inflation. Additionally, NHS waiting lists have declined significantly, and projections indicate that over half a million children will be lifted out of poverty during this parliamentary term.
Ms Reeves outlined the economic landscape she inherited: annual debt interest payments exceeding £100 billion; struggling public services plagued by underfunded capital investments, crumbling school infrastructure, and soaring hospital waiting lists. Economic growth was sluggish, interest rates were rising, and the cost-of-living crisis was worsening. Her first Budget focused on repairing public finances through fiscal consolidation, while the subsequent Spending Review injected an additional £120 billion into key areas.
In her second Budget last year, Ms Reeves built upon these foundations to address the cost of living directly. Measures included reducing energy bills and freezing prescription charges and rail fares, alongside doubling fiscal buffers to shield households from economic shocks. The Chancellor underscored that recent geopolitical tensions demonstrate the need for continued economic resilience in a volatile world, acknowledging that further work is necessary to safeguard Britain's economy.
Underpinning these actions, Ms Reeves introduced her 'securonomics' approach – an investment-led growth model focused on stable public finances, strategic infrastructure investment, and economic reform. This strategy, she argued, enables deliberate choices in support of a more resilient economy, one that can navigate global uncertainties with confidence.