Business Secretary Points to External Factors in UK Economic Assessment
Business Secretary Peter Kyle has indicated that former US President Donald Trump and ongoing Middle East tensions are contributing to current economic challenges in the United Kingdom, despite recent positive growth data.
Latest Economic Figures Show Mixed Results
According to the Office for National Statistics, UK GDP expanded by 0.5% during the three-month period ending in February 2026. The services sector matched this overall growth with a 0.5% increase, while production output rose more substantially by 1.2%. However, construction activity declined significantly by 2.0% during the same period.
Monthly data reveals GDP grew by 0.5% in February 2026 alone, following more modest increases of 0.1% in both January 2026 and December 2025. In February specifically, services and production both expanded by 0.5%, with construction showing a 1% growth for that single month.
Minister Expresses Frustration Over External Pressures
When questioned by Sky News about whether these pre-Iran war statistics represented a "painful glimpse" at what might have been, Kyle responded affirmatively. "It is. So yesterday when you heard that the Chancellor, Rachel Reeves, was expressing frustration, that's an understatement," he stated.
Kyle elaborated on the government's efforts, saying, "I have real frustration because we have bust a gut to get growth into our economy. All of the indicators were going in the right direction. Even though we're now facing challenges to that, because of what's happening in the Middle East, getting that resilience into the economy is going to stand us in incredibly good stead."
The Business Secretary specifically highlighted how external factors are impacting domestic outcomes: "But of course the fruits of all of that growth that we wanted to be felt in people's pockets is going to be stressed and challenged. That is the frustration we have and that is the implications of what is happening in the Middle East."
Chancellor Maintains Confidence in Government Strategy
Chancellor Rachel Reeves also addressed the economic statistics, reaffirming her belief that they demonstrate the Labour Party's policies are on the correct trajectory. "These growth figures show the Government has the right plan to build a stronger more resilient economy," she asserted.
However, Reeves acknowledged the looming impact of international conflicts, warning: "But the war in Iran will come at a cost. That is why we are taking the right, fair and necessary action to protect families and businesses."
The Chancellor's comments came alongside the Business Secretary's assessment, creating a unified government message that recognizes economic progress while preparing the public for potential challenges stemming from global geopolitical events and international policy decisions.
