Trade union Unite warns ‘families up and down the country are getting poorer’ while Tories slam Chancellor for having no plan.
Chancellor Rachel Reeves was dealt another blow (Image: Getty)
Rachel Reeves was accused of having “no plan” to grow the economy after the latest figures showed growth of only 0.1%. Tories said the economy was growing more slowly than the population, meaning output per person actually fell. And a leading trade union said household incomes were falling. It came after new data from the Office for National Statistics (ONS) showed gross domestic product (GDP) rose by 0.1% in the fourth quarter, following growth of 0.1% in the previous three months.
Sir Mel Stride, Shadow Chancellor of the Exchequer, said: “This morning’s news that the economy grew by just 0.1% in the final three months of last year shows Labour’s choices have weakened our economy. In fact, GDP per head has actually fallen for the second quarter in a row. These disappointing statistics show a Downing Street and a Treasury that have taken their eye off the ball.” Highlighting comments made by Health Secretary Wes Streeting, Sir Mel added: “Wes Streeting is right to say Labour have ‘no growth strategy’. They are distracted by scandals of their own making as Keir Starmer’s authority crumbles.”
Unite general secretary Sharon Graham said: “Today’s figures are further proof that the UK economy will not get the growth we were promised until we reverse our historic levels of under-investment.
“The figures also show that real household disposable income fell in 2025. Families up and down the country are getting poorer in real terms. We need to stop the rot and start delivering for everyday people.”
The ONS estimated that the economy expanded by 0.1% in December, down from 0.2% in November.
The fourth-quarter figures indicate the economy grew by 1.3% overall in 2025, up from 1.1% in 2024.
Liz McKeown, ONS director of economic statistics, said: “The economy continued to grow slowly in the last three months of the year, with the growth rate unchanged from the previous quarter.
“The often-dominant services sector showed no growth, with the main driver instead coming from manufacturing.
“Construction, meanwhile, registered its worst performance in more than four years.
“The rate of growth across 2025 as a whole was up slightly on the previous year, with growth seen in all main sectors.”
Chancellor of the Exchequer Rachel Reeves said: “Thanks to the choices we have made, we’ve seen six interest rate cuts since the election, inflation falling faster than predicted, and ours is the fastest growing G7 economy in Europe.
“The Government has the right economic plan to build a stronger and more secure economy, cutting the cost of living, cutting the national debt and creating the conditions for growth and investment in every part of the country.”
