GDP monthly estimate, UK:
January 2025
Chancellor of the Exchequer said:
“The world has changed and across the globe we are feeling the
consequences. That's why we are going further and faster to
protect our country, reform our public services and kickstart
economic growth to deliver on our Plan for Change.
“And why we are launching the biggest sustained increase in
defence spending since the Cold War, fundamentally reshaping the
British state to deliver for working people and their families;
and taking on the blockers to get Britain building again.”
Conservative response to disappointing GDP
figures
MP, Shadow Chancellor of the Exchequer, said:
“It is no surprise that growth is down again, following near no
growth in the last three months of 2024. After consistently
talking Britain down, raising taxes to record highs and crushing
business with their extreme employment legislation this
government is a growth killer.
“Labour inherited the fastest growing economy in the G7 but since
they arrived business confidence has collapsed and jobs are being
lost.
“The Chancellor has 12-days until her emergency Budget – she must
think again or hardworking people will continue to pay the price
of a Labour government without any business experience.”
ENDS
Notes to Editors
-
The Office for National Statistics confirmed GDP is
expected to have fallen by 0.1 per cent in January
2025. GDP is estimated to have fallen 0.1% in January
2025, mainly caused by a fall in the production sector (ONS,
GDP monthly estimate, UK: January 2025, 14 March 2025,
link).
The facts
-
Quarterly growth has been destroyed, estimated at 0.1
per cent for the final quarter of 2024.Labour
inherited the fastest growing economy in the G7, at 0.8 per
cent growth in the first quarter of 2024. As soon as Labour
came to power, the third quarter of 2024, the economy recorded
no growth and just 0.1 per cent estimated for the final quarter
of 2024 (Office for National Statistics, GDP first
quarterly estimate, UK: October to December 2024, 13
February 2025, link).
-
Inflation jumped to 3.0 per cent in January 2025, up by
0.5 per cent since December 2024.Having inherited
inflation bang on the 2.0 per cent target, new figures show
that inflation has jumped to 3.0 per cent in January 2025, up
from 2.5 per cent in December 2024, putting pressure on
household finances (Office for National Statistics,
Consumer price inflation, UK: January 2025, 18
February 2025, link).
said she could not pay for
public services without growth
-
said public spending is not
sustainable without economic growth. REEVES:
‘Because unless we grow the economy, we're going to continue to
be in a situation where taxes are at too high a level and
public spending is not sustainable. We've got to break out of
this doom loop, which is why growing the economy is the number
one priority of this new government' (Pool Clip, 29
August 2024, archived).
GDP Figures: Government
needs to be bold, Unite
In response to the latest GDP figures published
today, Unite general secretary Sharon Graham said:
“Securing good jobs for the future, along with collective
bargaining through trade unions is by far the best route to
growth. Workers spend their wages in their local economies - they
don't send their money to the Cayman
Islands.
"So if we are serious about improving the
economy, the government needs to move quicker and more decisively
on improving jobs, pay and conditions - we can't afford to wait
for the investment, employment laws and joined up industrial
strategy that the country needs. We won't get growth by sitting
on our hands.”
TUC: Government must
continue to invest in growth
Commenting on today's (Friday) ONS
figures showing monthly GDP down by 0.1% in January but the
three-month rate up by 0.2%, TUC General Secretary
Paul Nowak
said:
“Restoring the economy to long-term
growth will be a bumpy ride - especially after 14 years of Tory
stagnation.
“The Government's approach is taking
us in the right direction.
“But there is still much more to do.
Creating secure, decently paid jobs - the bedrock of a strong and
resilient economy - will play a crucial role in reviving finances
for families, and the country.
“The Bank of England also needs to
continue playing its part. An interest cut next week is key to
keep supporting spending and
growth.”
Commenting on the forthcoming Spring
Forecast, Paul
Nowak added:
“These figures show the need for
public investment.
“Investment in public services and
infrastructure will bring our economy back on track. Stronger
growth is the best way to secure sustainable public
finances.”
