GDP figures - Q4 2025
Chancellor of the Exchequer 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.”
Conservative response to GDP figures
Sir MP, Shadow Chancellor of the Exchequer, said:
“This morning's news the economy grew by just 0.1 per cent 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. is right to say Labour have ‘no growth strategy'.
They are distracted by scandals of their own making as Keir
Starmer's authority crumbles.
“Only the Conservatives have the leader with a backbone, a plan
and the team to deliver a stronger economy and get Britain
working again.”
ENDS
Notes to Editors:
Labour have made irresponsible choices:
-
Labour's hiked taxes by £26 billion
– pushing the tax burden to a historic high.
Despite her pledge not to ‘come back for more', increased taxes by £26
billion, pushing the tax burden to a historic high of 38.3 per
cent of GDP (OBR, Economic and Fiscal Outlook, 26
November 2025, archived).
-
Borrowing this financial year was £140.4
billion, the highest on record outside the
pandemic after 2024. ‘Borrowing in the financial year
to December 2025 was £140.4 billion; this was £0.3 billion or
0.2% less than in the same nine-month period of 2024, but still
the third-highest April to December borrowing on record (not
adjusted for inflation), after those of 2020 and 2024' (ONS,
Public Sector Finances, 22 January 2026, link).
-
Welfare spending will reach £406
billion by the end of the scorecard after
Labour abandoned their welfare reforms. Labour's
failure to reform welfare means welfare spending will reach
£406 billion by the end of the scorecard (OBR, Economic and
Fiscal Outlook, 26 November 2025, link).
As a result, the economy is weaker:
-
Inflation is rising, having
remained above the Bank of England's target every month of
2025. Having inherited inflation bang on the 2.0 per
cent target, new figures show it rose by 3.4 per cent in the 12
months to December 2025, up from 3.2 per cent in the 12 months
to November, meaning inflation has exceeded the Bank of
England's target every month since Labour's first Budget.
Additionally, the OBR's November 2025 Economic and Fiscal
Outlook uprated the CPI inflation forecast for 2026 from
2.1 to 2.5 per cent (ONS, Consumer Price Inflation, 21
January 2026, link; OBR,
Economic and Fiscal Outlook, 26 November 2025,
link).
-
The unemployment rate is 5.1 per
cent, its highest level since the
pandemic. The unemployment rate for 16 and over
remained at 5.1 per cent in September to November 2025, up from
4.2 per cent at the election. Additionally, the November 2025
Economic and Fiscal Outlook raised the forecast unemployment
rate for each year from 2026 through 2029 (ONS, Labour
Market Statistics, 20 January 2026, link; OBR,
Economic and Fiscal Outlook, 26 November 2025,
link).
Unite reaction
In response to the latest quarterly GDP figures, 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 underinvestment.
“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.”
