British economy 'broadly flat' as GDP grows slightly in November after two months of contraction
16 January 2025, 07:04 | Updated: 16 January 2025, 07:28
The British economy grew slightly in November after two straight months of contraction.
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The economy grew by 0.1%, GDP figures released by the Office for National Statistics revealed on Thursday morning.
It comes after the economy shrank by 0.1% in both October and September.
The November growth figure is lower than many economists had expected.
But the news may be seen as a mildly positive sign for the government and Chancellor Rachel Reeves, who have said that growing Britain's economy is their top priority.
Ms Reeves has been under fire over the past week as the cost of government borrowing increased.
The increase was largely driven by construction and services, sectors whose economic output expanded slightly, while production was down slightly.
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Liz McKeown, the director of economic statistics at the ONS, said: "The economy continues to be broadly flat, having grown slightly in November following two small falls in the previous months.
"Services grew a little, with wholesaling, pubs and restaurants and IT companies all doing well, partially offset by falls in accountancy and business rental & leasing."
Reacting to the figures, Ms Reeves said: “I am determined to go further and faster to kickstart economic growth, which is the number one priority in our Plan for Change.
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“That means generating investment, driving reform and a relentless commitment to root out waste in public spending, and today I will be pressing regulators on what more they can do to deliver growth.
“After fourteen years of economic stagnation, this government’s number one mission is to grow our economy. I will fight every day to deliver that growth and put more money into working people’s pockets.”
But opposition parties said that November's slight growth was "disappointing" and even "pitiful".
The Conservative Shadow chancellor Mel Stride said: "Labour inherited the fastest-growing economy in the G7, but this is the third month in a row of disappointing growth figures.
"The Chancellor seems content with burying her head in the sand, but this is a crisis made in Downing Street. We need an urgent change of course."
Liberal Democrat Treasury spokeswoman Daisy Cooper said: "The Chancellor has put the handbrake on the economy with her misguided jobs tax and the consequence is this pitiful rate of growth.
"Every month this persists means less money in struggling families' pockets and public services without the funding they need.
"After years of the Conservatives' economic vandalism, the public was crying out for change but this new Government is falling well short of fixing this mess.
"Rachel Reeves needs to see sense and scrap her foolish jobs tax, and pursue a real strategy for growth like fixing our broken trade relationship with our European partners and replacing the broken business rates system."
