UK economy grows by 0.1% despite uncertainty over Reeves’s budget

The Guardian - World NewsEN 2 min read 100% complete by Tom KnowlesFebruary 12, 2026 at 08:01 AM

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The UK economy grew by 0.1% in the last quarter of 2025, matching the previous quarter's growth but falling short of economists' expectations of 0.2%. Overall growth for 2025 was 1.3%, an improvement from 2024. While the services sector showed no growth, the production sector drove the increase, offsetting a decline in construction. The Office for National Statistics noted that economic activity slowed before the late November budget, possibly due to tax speculation. The Bank of England held interest rates steady, anticipating future cuts due to lower inflation resulting from cost of living measures in the budget.

Key Entities & Roles

Key Player Opposition Context

Jaguar Land Rover 40% Bank of England 40% Office for Budget Responsibility 50% Liz McKeown 50% Office for National Statistics (ONS) ×370% United Kingdom 80% Rachel Reeves ×590%

Keywords

uk economy 100% economic growth 90% budget 70% spending 60% office for national statistics 60% services sector 50% production sector 50% interest rates 40% construction industry 40%

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Neutral

Score: 0.10

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The Guardian - World News

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uk economy economic growth budget spending office for national statistics services sector production sector interest rates construction industry

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