Overview
- Official figures show the economy grew 1.3% in 2025, with output rising just 0.1% in both the third and fourth quarters.
- Chancellor Rachel Reeves highlighted the annual growth figure and said GDP per capita rose 1% year on year, rejecting claims the government lacks a growth plan.
- The late‑year reading was supported by Jaguar Land Rover restarting production as services stalled and construction posted its worst performance in four years.
- Reporting counts roughly £75bn in tax increases since the government took office, a stance credited with preserving market confidence and OBR/Bank of England backing at significant political cost.
- Wes Streeting’s message that there is “no plan for growth” has intensified internal pressure as commentators warn that prolonged weakness could spur further political turmoil.