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Home » UK economy experiences GDP growth despite caution over Rachel Reeves’s Budget
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UK economy experiences GDP growth despite caution over Rachel Reeves’s Budget

By britishbulletin.com15 January 20264 Mins Read
UK economy experiences GDP growth despite caution over Rachel Reeves’s Budget
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Britain’s economy expanded by 0.3 per cent in November, following an unrevised fall of 0.1 per cent in October 2025 and a growth of 0.1 per cent in September 2025.

The Office for National Statistics (ONS) confirmed the growth this morning in its latest release of Gross Domestic Product (GDP) figures.


The growth is faster than expected, with City economists projecting growth of just 0.1 per cent.

GDP measures economic growth by calculating the total monetary value of all final goods and services produced within the country, over a specific period.

In the three months to November, GDP grew by 0.1 per cent, after showing no growth in the three months to October.

This has been revised up from a fall of 0.1 per cent in the ONS’s previous publication, and an unrevised growth of 0.1 per cent in the three months to September 2025.

ONS director of economic statistics Liz McKeown said: “The economy grew slightly in the latest three months, led by growth in the services sector, which performed better in November following a weak October.

“This was partially offset by a fall in manufacturing, where three monthly growth was still affected by the cyber incident that impacted car production earlier in the autumn.

“However, data from the latest month show that this industry has now largely recovered.

“Construction contracted again, registering its largest three-monthly fall in nearly three years.”

Ms Reeves has been criticised for failing to inject growth into the economy on previous occasions

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GETTY/ONS

In response to the figures, a Treasury spokesperson said: “To make the economy work for working people, we are reversing years of underinvestment by protecting record infrastructure investment, driving through major planning reform, backing expansion at Heathrow and Gatwick, delivering Northern Powerhouse Rail and getting Sizewell C built.”

They said that at the same time, Government “are taking action to get bills and inflation down”, citing the move to take £150 off energy bills, and freeze rail fares “to deliver an economy that works for working people.

“There’s more to do – driving growth, delivering the consolidation to provide stability, keeping inflation low and stable, tackling the cost of living and bringing our borrowing costs down.”

Business investment had remained muted ahead of the Autumn Budget in November, which was compounded by a slowdown in the car industry in the wake of the JLR cyber attack.

Central to the Chancellor’s ambitions has been to stimulate sustained growth in the economy, improve investment, and create jobs.

In fact, this time last year, she said: “For too long, we have accepted low expectations, accepted stagnation and accepted the risk of decline. We can do so much better.

GDP had grown 1.4 per cent compared with November 2024

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ONS

“Low growth is not our destiny. But growth will not come without a fight.

“That’s what our Plan for Change is about. That is what drives me as Chancellor. And it is what I’m determined to deliver.”

Responding to the figures, Ben Caswell, senior economist at the National Institute of Economic and Social Research, today’s figures are welcome news for the economy: “With GDP growing modestly in November despite the uncertainty in the run-up to the Budget.

“Given today’s figure, we now project that the economy grew 1.4 per cent in 2025 – a rise in the growth rate compared to the year before.

ONS breakdown of the figures

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ONS

“Against this backdrop, the Chancellor more than doubled her fiscal headroom at the Budget in an effort to bolster economic confidence.

“While it is too early to see the full effect of this, the move appears to have eased speculation over future tax policy and the uncertainty that came with it.”

Despite some positivity among economists over the above-projection growth figures, Shadow Chancellor Sir Mel Stride took to X to say: “Growth is still flatlining.

“The Chancellor promised growth as her number one mission, but a failure to grip the benefits bills – and instead putting up taxes – is weighing heavily on business and the economy.

“Low growth is due to this Chancellor’s choices.”

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