Britain’s economy grew by less than expected at the end of last year, amid continued uncertainty following the Budget.
UK GDP expanded by 0.1% in the final three months of 2025, below the 0.2% forecast by economists surveyed by Bloomberg.
ONS director of economic statistics Liz McKeown said: “The economy continued to grow slowly in the last three months of the year, with the growth rate unchanged from the previous quarter.
“The often dominant services sector showed no growth, with the main driver instead coming from manufacturing.
“Construction, meanwhile, registered its worst performance in more than four years.”
Housebuilder Barratt Redrow has warned that the forthcoming spring statement could trigger a repeat of the slowdown in sales seen ahead of the late Budget.
Chancellor Rachel Reeves said: “Thanks to the choices we have made, we’ve seen six interest rate cuts since the election, inflation falling faster than predicted and ours is the fastest growing G7 economy in Europe.
“The Government has the right economic plan to build a stronger and more secure economy, cutting the cost of living, cutting the national debt and creating the conditions for growth and investment in every part of the country.”
However, the figures prompted renewed political criticism from the Conservatives.
Mel Stride, the shadow chancellor, said: “These disappointing statistics show a Downing Street and a Treasury that have taken their eye off the ball. Wes Streeting is right to say Labour have ‘no growth strategy’. They are distracted by scandals of their own making as Keir Starmer’s authority crumbles."
FSTE100
The UK's flagship share index, the FTSE 100, was up 41 points at 10,513 shortly after opening this morning.
Brent crude oil futures were up 0.02% at $68.27 a barrel.
Companies reporting today
- Ashmore Group - Half Year Results
- British American Tobacco - Full Year Results
- RELX - Full Year Results
- Schroders - Full Year Results
- Unilever - Full Year Results