Bloomberg Daybreak: Europe Edition Exclusive: Rachel Reeves on Iran Shock, US Trade & Inflation Risks
Mar 3, 2026
Rachel Reeves, Britain’s chancellor overseeing economic and financial policy, discusses risks from Middle East tensions, oil-driven inflation threats, and talks with North Sea producers on supply. She outlines stronger public finances as a buffer. She also covers trade talks, migration and skills, and how AI could boost UK industries.
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Shield Households From Short Term Energy Pain
- Do protect households from immediate energy shocks with targeted short-term measures.
- Rachel Reeves explained the Spring Statement's freeze on prescription charges, rail fares, and a £150 energy bill credit coming into effect next month.
Better Public Finances Increase Shock Absorption
- Stronger public finances give the UK more room to absorb global shocks like Middle East conflict.
- Reeves cites OBR and Bank of England revisions showing faster falls in inflation and lower borrowing than expected, improving fiscal resilience.
Three Drivers Behind Lower Borrowing
- The improved borrowing outlook stems from three drivers: stronger tax receipts, disciplined spending, and lower gilt borrowing costs.
- Reeves highlighted a record January surplus, unused contingency reserve, and an OBR revision lowering next year's borrowing costs by £4bn.