Need to know
The Office for National Statistics said the UK economy grew by a better than forecast 0.3% in November – in a much needed boost to Chancellor Rachel Reeves
Chancellor Rachel Reeves – photographed during a visit to a train depot in Leeds – got a small boost from new economic data (Image: PA)
What you need to know about latest GDP figures
- Gross domestic product (GDP) basically measures the value of everything the UK churns out – and hence tells us the state the economy over a set period. In 2024, the UK economy was worth £2.8trillion.
- The Office for National Statistics said GDP rose by 0.3% in November, slightly better than economists thought, and offsetting a decline in October.
- November’s uptick in gross domestic product came despite fears that jitters ahead of Chancellor Rachel Reeves’ Budget at the end of the month held back spending by households and businesses
- The starting of production at Jaguar Land Rover’s factories – after a cyber attack on the firm forced their temporary shut-down – definitely helped. But consumer spending also did ok.
- But experts warn the UK economy remained stuck in the slow lane, with little hope of a significant pick-up any time soon. Growth next year is forecast to be no more than 1.5%, against a long-term average of more like 2.5%.
- Such weakness holds back the Treasury’s tax incomes and puts pressure on the Chancellor to consider other ways to raise money or reduce spending.
- Economists are divided on whether the data will prompt the Bank of England to cut interest rates again next month. The base rate is currently set at 3.75%.
- READ MORE UK ECONOMY UPDATES FROM THE MIRROR
