UK economy unexpectedly grows by 0.1% in final months of last year

The UK economy grew in the final quarter of last year after better-than-expected expansion in December, according to official figures.

The Office for National Statistics (ONS) said gross domestic product (GDP) grew by 0.1% higher between October and December, following no growth in the previous three months.

The ONS estimated that the economy expanded by 0.4% in December, which is better than most analysts expected, and marked a pick up following a 0.1% rise in November and a 0.1% fall in October.

The fourth quarter figures means the economy grew by 0.9% overall in 2024.

Chancellor Rachel Reeves said: “For too long, politicians have accepted an economy that has failed working people. I won’t.

“After 14 years of flatlining living standards, we are going further and faster through our plan for change to put more money in people’s pockets.

“That is why we are taking on the blockers to get Britain building again, investing in our roads, rail and energy infrastructure, and removing the barriers that get in the way of businesses who want to expand.”

Shadow chancellor Mel Stride said Rachel Reeves’ Budget was “killing growth” and working people and businesses are “already paying for her choices.”

He said: “The Chancellor promised the fastest growing economy in the G7, but her budget is killing growth.

Chancellor Rachel Reeves said Labour are “going further and faster through our plan for change to put more money in people’s pockets.” / Credit: PA

“Working people and businesses are already paying for her choices with ever rocketing taxes, hundreds of thousands of job cuts and business confidence plummeting.

“It does not need to be this way.

“Under new leadership, the Conservative Party will continue to oppose Labour’s disastrous decisions and stand up for businesses and working people up and down our country.”