UK economy grows by 0.1% despite uncertainty over Reeves’s budget

ONS reports GDP growth increased in final three months of 2025 after 0.1% growth in previous three months

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The UK economy expanded by 0.1% in the final three months of last year, according to official data, despite signs that tax speculation around Rachel Reeves’s budget had dampened spending.

Figures from the Office for National Statistics (ONS) show that the economy grew at the same rate of 0.1% as the previous three months. Economists had been expecting a rise of 0.2%.

The economy grew by 1.3% in 2025, an improvement on growth of 1.1% in 2024. The ONS said it grew by 0.1% on a monthly basis in December, slowing from 0.2% in November – a figure that was revised down from 0.3%.