Britain’s economic system expanded unexpectedly on the finish of final yr, official figures present, regardless of Rachel Reeves’s £40bn Funds tax raid.
The UK’s gross home product (GDP) rose by 0.1pc within the three months to December, in line with the Workplace for Nationwide Statistics (ONS).
The determine was higher than analysts’ projections for a 0.1pc contraction and leaves Britain formally out of recession, outlined as two consecutive three-month durations of declining GDP.
Nevertheless, the low charge of development highlights the problem confronted by Sir Keir Starmer’s Authorities in kickstarting its development mission.
Actual GDP per head, which is commonly described as a measure of common residing requirements, is estimated to have fallen by 0.1pc within the ultimate three months of final yr.
ONS director of financial statistics Liz McKeown stated: “The economic system picked up in December after a number of weak months, which means, total, the economic system grew somewhat within the fourth quarter of final yr.
“Throughout the quarter, development in companies and building have been partially offset by a fall in manufacturing. GDP per head, in distinction, fell again barely within the quarter.”
The Chancellor introduced final month that the Authorities is backing a 3rd runway at Heathrow in an effort to spice up the economic system.
She has confronted accusations of hampering development together with her talks of a “£22bn black gap” within the public funds earlier than the Funds, and her £25bn Nationwide Insurance coverage raid on employers.
Final week, the Financial institution of England halved its development expectations for this yr, suggesting the economic system would solely develop by 0.75pc earlier than accelerating to 1.5pc in 2026 and 2027.
Ms Reeves stated: “For too lengthy, politicians have accepted an economic system that has failed working folks. I received’t.
“After 14 years of flatlining residing requirements, we’re going additional and quicker by means of our Plan for Change to place more cash in folks’s pockets.”
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