Humiliation for Rachel Reeves as ‘families getting poorer’ | Politics | News
Rachel Reeves has been accused of having “no plan” to grow the economy after the latest figures showed growth of just 0.1%. The Tories said the economy was growing more slowly than the population, meaning output per capita was falling. A leading union also said household income had fallen. This comes after new data from the Office for National Statistics (ONS) showed gross domestic product (GDP) rose 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 that Labor’s choices have weakened our economy. In fact, GDP per head actually fell for the second quarter in a row. These disappointing statistics show that Downing Street and the Treasury have taken their eye off the ball.” Highlighting comments made by Health Secretary Wes Streeting, Sir Mel added: “Wes Streeting is right to say Labor has ‘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 evidence that the UK economy will not achieve the growth we have promised until we reverse historic levels of underinvestment.
“The figures also show that household disposable income is falling in 2025. Families up and down the country are falling into real poverty. We need to stop the decay and start serving ordinary people.”
The ONS predicted the economy grew by 0.1% in December, down from 0.2% in November.
Fourth quarter figures show the economy growing 1.3% overall in 2025, up from 1.1% in 2024.
ONS director of economic statistics Liz McKeown said: “The economy continued to grow slowly in the last three months of the year, with the rate of growth remaining unchanged from the previous quarter.
“The usually dominant services sector did not show growth; the main driver came from manufacturing instead.
“Meanwhile, construction recorded its worst performance in more than four years.
“The overall growth rate in 2025 increased slightly compared to the previous year, and growth was seen in all main sectors.”
Chancellor of the Exchequer Rachel Reeves said: “Thanks to the choices we have made, we have seen six interest rate cuts since the election, we have seen inflation fall faster than expected 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, reduce living costs, reduce the national debt and create the conditions for growth and investment in every part of the country.”
