Unexpected boost for Reeves as economy grew at end of last year: Politics live – UK Times

Defence Secretary John Healey spoke out as Donald Trump and Vladimir Putin have discussed a possible resolution to the war.

Mr Healey said: “We’ve seen the calls from President Trump overnight and we all want to see a durable peace and no return to conflict and aggression – and let’s not forget, Russia remains a threat well beyond Ukraine.

“So my message in these discussions will be that there can be no negotiation about Ukraine without Ukraine and Ukraine’s voice must be at the heart of any talks.

“Ukrainians are fighting bravely. It’s our jobs. It’s our job as defence ministers here at Nato, to put them in the best position to secure a lasting peace through strength.”

The US has suggested that as part of a peace deal Ukraine must accept it will have to give up some territory to Russia and Nato membership is not a realistic prospect.

But Nato’s official position – endorsed by Sir Keir Starmer’s Government in the UK-Ukraine 100-year partnership – is that Kyiv is on an “irreversible” path to joining the alliance.

Housing minister Matthew Pennycook told Times Radio: “Well, we’re not satisfied by the figures this morning, although there are some good indications in there, in my own sphere of responsibilities, if you like, and I hope we’re going to talk about it in some form.

“Construction numbers are up, but we’re not satisfied by these numbers. But on the other hand, we always knew that there was no silver bullet, no simple remedy to turning around 14 years of economic stagnation.

“We had to obviously come in, first off, and fix the public finances, put them on a sound footing, address that black hole that we discovered on assuming office.

“Then we’ve been focused on removing the regulatory barriers to growth that exist in my own area, that took the form of overhauling the national planning policy framework. So it’s a pro-growth framework.”

Rachel Reeves has been handed an unexpected boost with today’s figures showing that the economy grew by 0.1 per cent in the final quarter of 2024.

The data has been welcomed by business groups, including the CBI, who said it suggests that the loss of momentum in the second half of the year will “prove to be a soft patch for the economy rather than a slide back into stagnation”.

The possibility of avoiding recession will undoubtedly come as a relief for the beleaguered chancellor – who has spent recent weeks fighting to prove she is the right person for the job. But it’s also not exactly an ambitious benchmark for a government that has put getting the economy moving at the centre of its mission.

The fact that 0.1 per cent growth is higher than expected should have alarm bells ringing for Labour.

While the Treasury has been clear it understands there is a long way to go, businesses and consumers are yet to be given any concrete evidence that the policies the government has put in place so far haven’t done more harm than good.

Shadow chancellor Mel Stride said that while Reeves promised the “fastest growing economy in the G7”, but her budget was “killing growth” following news of an unexpected boost to GDP in the final quarter.

“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.”

Ben Jones, the lead economist of the Confederation of British Industry (CBI), called the rebound in December “encouraging.”

He continued: “Although growth over Q4 as a whole was still lacklustre, the data supports our view that the loss of momentum in the second half of last year will prove to be a soft patch for the economy rather than a slide back into stagnation.“

“But our recent forecast for a return to moderate growth over 2025 will require consumers to abandon some of their recent caution. And it assumes that businesses won’t see their headroom for investment squeezed any further.

“Today’s figures underline how important the government’s renewed focus on growth is. Much of the innovation and investment necessary to drive economic growth will come from business leaders across the UK.

“They want to see a government fired up to move from positive words to ambitious delivery, working with business to create the right environment for investment and expansion.

“Whether that’s the Industrial Strategy, or reforms to business rates and the Apprenticeship Levy. By prioritising these the government can unlock much needed private sector investment and deliver on its clear vision to kickstart the economy in 2025.”

Following unexpectedly positive news that the UK economy grew by 0.1 per cent in the final quarter last year, Chancellor Rachel Reeves released a statement renewing her aim to make the economy work for working people.

She said in a statement: “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.”

Gross Domestic Product grew by 0.1 per cent between October and December last year, the Office of National Statistics has announced.

Figures were expected to shrink after the Bank of England warned last week that it expected GDP to contract by 0.1 per cent in the fourth quarter of 2024, following zero growth in the previous three months.

This is set to bolster Chancellor Rachel Reeves, who has faced intense criticism over the last few months over her October budget.

European nations have heard the US defence secretary’s call for them to step up in relation to Ukraine, John Healey said, adding: “We are and we will.”

At a press conference in Brussels following a meeting of defence leaders from across the world on Wednesday, the UK defence secretary said: “It was a pleasure in his third full week in the job to welcome Secretary Hegseth.

“He confirmed the US’s continued commitment to this group, to Ukraine’s pursuit of a lasting peace and the importance of security guarantees … we heard his call for European nations to step up. We are and we will.

“Nato allies pledged €40bn in military aid for Ukraine in 2024 and then went on to deliver €50bn. The majority, nearly 60 per cent of that aid to Ukraine last year came from European nations.

“And while at the same time, we did more on Ukraine and will do more, we did more on defence spending and will do more.”

More than 100 potential locations have been suggested for new towns in England as Sir Keir Starmer promised “the largest housebuilding programme since the post-war era”.

Each new town will have the potential for 10,000 or more homes as the Government promised to sweep away red tape and overcome environmental objections to get housing built.

A separate project to push ahead with stalled housing projects has already unblocked 20,000 homes, Sir Keir said.

The Prime Minister’s push for new towns comes after Sir Keir and his deputy Angela Rayner joined the King for a tour of the Nansledan development inspired by Charles’ views on architecture and planning on Monday.

The move raised concerns about dragging the King into politics, coming just days before Thursday’s announcement about plans to create “beautiful communities” with affordable homes, much-needed infrastructure, GP surgeries and schools.