UK economy grew by 0.1% last quarter despite Budget uncertainty – UK Times

The UK economy grew modestly again in the last three months of 2025 amid pressure from budget uncertainty, figures just released show.

The Office for National Statistics (ONS) said UK GDP (gross domestic product) data grew by 0.1% per cent in the final quarter between October and December last year, following growth of 0.1 per cent in the third quarter.

Some had suggested that fourth-quarter growth could tip slightly higher after stronger-than-expected activity in November and that clarity following the autumn Budget could have supported firms in the run-up to Christmas.

Previous figures from the ONS showed that the economy contracted by 0.1 per cent in October and then expanded by 0.3 per cent in November as the manufacturing sector was boosted by recovering production at Jaguar Land Rover after its major cyber attack.

The Bank of England on Thursday cut its growth forecast for 2026, from 1.2 per cent to 0.9 per cent, and for 2027, from 1.6 per cent to 1.5 per cent.

Victoria Scholar, head of investment at Interactive Investor, said: “it is likely that economic activity picked up after the budget once that cloud of uncertainty shifted to the rearview mirror in December.

“Plus, there could have been an improvement in the services sector with consumers spending on things like food and beverages, retail, and hotels around the festive season.”