UK economy unexpectedly grew by 0.1% in last quarter of 2024, new figures show
13 February 2025, 07:05 | Updated: 13 February 2025, 07:51
The UK economy showed an unexpected growth of 0.1% at the end of 2024, official figures show.
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This small growth goes against predictions, which expected a downturn following declining confidence in the wake of Rachel Reeves' Autumn Budget.
This will mark a boost for Labour, which has made growth the central message of its government.
Despite this small victory, this period followed a zero growth reading for the previous three months to September.
Equally, the risk of a recession still looms large in the UK with the difference between growth and decline remaining so small for such a long period of time.
Responding to today's numbers, Chancellor Rachel Reeves said: "For too long, politicians have accepted an economy that has failed working people. I won’t.
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"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. "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.
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"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."
This comes after the Bank of England cut the base rate of interest from 4.75% to 4.5%, the lowest level since May 2023.
Economists had expected the cut - which will bring cheaper mortgage payments for homeowners on variable deals.
Ms Reeves said the interest rate cut was "welcome news" but that she was still "not satisfied" with growth.
She said: "This interest rate cut is welcome news, helping ease the cost-of-living pressures felt by families across the country and making it easier for businesses to borrow to grow.
"However, I am still not satisfied with the growth rate. Our promise in our Plan for Change is to go further and faster to kickstart economic growth to put more money in working people's pockets.
"That's why we are taking on the blockers to get Britain building again, ripping up unnecessary regulatory barriers and investing in our country to rebuild roads, rail and vital infrastructure."
