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The
Office for National Statistics said Thursday that the 0.4%
expansion in December was a result of a broad-based expansion,
with pubs doing particularly well in the run-up to Christmas.
The fourth quarter figures means the economy grew by 0.9%
overall in 2024.
The quarterly increase followed no growth in the previous three
months and may ease some of the pressure on Treasury chief
Rachel Reeves, who critics say has been partly responsible for
the economic slowdown since Labour returned to power in July.
Last week, the Bank of England halved its growth forecast for
the British economy for 2025 to 0.75% as it cut its main
interest rate to 4.5%.
If that turns out to be remotely accurate, it will be hugely
disappointing news for the U.K.’s new Labour government, which
has made growth its top mission The party has pledged to boost
living standards and generate funds for cash-starved public
services. With growth proving elusive, the party’s popularity
has fallen sharply since its election victory in July.
In recent weeks, Reeves has set out plans to boost longer-term
growth, such as backing a third runway at London's Heathrow
Airport. She has also pledged to create a Silicon Valley-like
technology hub between the two university towns of Oxford and
Cambridge, backed the regeneration of the area around Manchester
United’s Old Trafford soccer stadium, as well as a “reset” of
the U.K.’s post-Brexit economic relations with the European
Union.
Reeves said the government will go “further and faster” to
bolster growth in the months and years ahead.
“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," she said.
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