UK economy grew by better-than-expected 0.3% in November despite budget uncertainty | Economic growth (GDP)

The UK economy grew by 0.3% in November despite uncertainty over Rachel Reeves’ budget, official figures show.

Figures from the Office for National Statistics on Thursday showed the improvement compared to a 0.1% fall in October.

The return of moderate growth after October’s slump is unlikely to deter Bank of England policymakers, who are keen to pursue further interest rate cuts.

In early 2025, economic output took a hit due to a cyber attack on automaker Jaguar Land Rover that negatively affected vehicle production, but the expected recovery barely materialized.

However, more evidence of the health of the economy will emerge with inflation and unemployment data to be released next week. Reeves wants to see further interest rate cuts as part of the government’s drive to reduce living costs.

The Chancellor announced his second tax increase budget on 25 November, after a period of feverish speculation. Business groups have occasionally accused tax rumors of deterring investment and consumer spending.

Reeves is expected to announce additional support for the hospitality sector in the coming days following the backlash over changes to the business rates regime.