UK’S ECONOMY GROWS FOR FIRST TIME IN THREE MONTHS - BUT LESS THAN EXPECTED

The UK economy grew slightly in November after it shrunk in both October and September, latest official figures show.

Gross domestic product (GDP) rose by 0.1 per cent, according to figures published by the Office for National Statistics.

It marked a rebound after two months of contraction - although the ONS described the economy as “broadly flat” with no growth over the three-month period to November. Thursday’s figure was also below the 0.2 per cent rise many economists had expected.

It comes after a difficult past couple of weeks for the Chancellor Rachel Reeves, after government borrowing costs surged and the value of the pound slumped amid worries over the economy and UK debt levels.

Markets calmed on Wednesday after a surprise fall in inflation - but the paltry growth in the UK economy for November will lead to more questions.

Responding to the data, chancellor Ms Reeves said she will “fight every day to deliver” economic growth.

She said: “After 14 years of economic stagnation, this government’s number one mission is to grow our economy. I will fight every day to deliver that growth and put more money into working people’s pockets.”

The ONS said November’s figure was helped by a rise in output across pubs, restaurants and IT companies. But there were also falls, particularly in the manufacturing sector, which shrunk by 0.3 per cent in November.

On Thursday, Ms Reeves will hold a meeting with regulators in No 11 as she attempts to cut red tape and remove barriers to investment to kickstart sluggish growth.

Along with Business Secretary Jonathan Reynolds, she will meet bosses of the Competition and Markets Authority, Ofcom, Ofwat, Ofgem, the Office of Rail and Road, the Environment Agency and the Civil Aviation Authority to look at reforms to the way they work.

But she continues to face criticism, including from opposition parties.

Shadow chancellor Mel Stride called the latest GDP figure “disappointing”. He said: “The chancellor seems content with burying her head in the sand, but this is a crisis made in Downing Street. We need an urgent change of course.”

Liberal Democrat Treasury spokeswoman Daisy Cooper said the lack og growth in the UK economy meant less money in families’ pockets and public services without the funding.

She said: “After years of the Conservatives’ economic vandalism, the public was crying out for change but this new government is falling well short of fixing this mess.

“Rachel Reeves needs to see sense and scrap her foolish jobs tax, and pursue a real strategy for growth like fixing our broken trade relationship with our European partners and replacing the broken business rates system.”

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2025-01-16T07:22:49Z