The UK economy expanded by 0.1% in November, according to the Office for National Statistics (ONS), falling short of City forecasts of 0.2% growth. The figure provides some relief for Chancellor Rachel Reeves after contractions in September and October, though the economy showed no growth in the three months to November.
Chancellor Reeves acknowledged the need for faster action, stating she is “determined to go further and faster” to stimulate growth. She blamed “14 years of economic stagnation” for the current situation and emphasised that growth is the government’s top priority. Following a meeting with regulators, she announced that 17 watchdogs will be required to propose five growth-promoting measures each.
The weaker-than-expected growth increases the likelihood of a Bank of England interest rate cut next month. UK government borrowing costs fell after the data release, with 10-year gilt yields dropping to 4.67%, easing pressure on Reeves to avoid breaching her fiscal rules.
Shadow Chancellor Mel Stride criticised the figures, saying Labour inherited the fastest-growing G7 economy and accusing Reeves of “killing investment and jobs”. Shadow Business Secretary Andrew Griffith described the regulatory proposals as “desperation”. Prime Minister Keir Starmer defended the government’s approach, calling the growth “a step in the right direction” and pledging to be “unrelenting” in driving economic growth through planning and regulatory changes.
