The chancellor has vowed not to accept an “economy that has failed working people” following unexpected growth of 0.1 per cent in the final quarter of 2024.
The Office for National Statistics reported a 0.1 per cent rise in gross domestic product (GDP) during the fourth quarter, with a recovery for growth in services and manufacturing during December coming to the government’s rescue.
The ONS estimated that the economy expanded by 0.4 per cent in December, which is better than most analysts expected, and marked a pick up following a 0.1 per cent rise in November and a 0.1 per cent fall in October.
The wider ONS figures showed that across 2024 as a whole, total GDP grew by 0.9 per cent.
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Reacting to the latest GDP estimates, Rachel Reeves vowed not to accept an “economy that has failed working people”.
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She said: “For too long, politicians have accepted an economy that has failed working people. I won’t.
“After 14 years of flatlining living standards, we are going further and faster through our Plan for Change to put more money in people’s pockets.
“That is why we are taking on the blockers to get Britain building again, investing in our roads, rail and energy infrastructure, and removing the barriers that get in the way of businesses who want to expand.”
Shadow chancellor Mel Stride responded that working people and businesses are “already paying” for the government’s choices made at the autumn budget.
He said in a statement: “The chancellor promised the fastest growing economy in the G7, but her budget is killing growth.
“Working people and businesses are already paying for her choices with ever rocketing taxes, hundreds of thousands of job cuts and business confidence plummeting.
“It does not need to be this way. Under new leadership, the Conservative Party will continue to oppose Labour’s disastrous decisions and stand up for businesses and working people up and down our country.”
Liberal Democrat Treasury spokesperson Daisy Cooper said: “The chancellor’s budget has resulted in pitiful economic growth. Her complete pigs ear of a jobs tax will hammer small businesses, the backbone of our economy.
“Alongside the government’s baffling refusal to negotiate a bespoke UK-EU Customs Union which would boost British business, the government’s red lines have done nothing but stall our economy.
“Growth is the only way to rescue our public services and protect family finances. These woeful figures and the chancellor’s misguided policies will only prolong the misery.”
Josh Self is Editor of Politics.co.uk, follow him on Bluesky here.
Politics.co.uk is the UK’s leading digital-only political website. Subscribe to our daily newsletter for all the latest news and analysis.
