Britain’s economy grew in the final three months of 2024 to ensure the UK avoided going into recession.
The Office for National Statistics said GDP went up by 0.1% between October and December after flatlining in the third quarter of last year.
In a further boost for Rachel Reeves, official figures showed the economy grew by a better-than-expected 0.4% in December, compared to just 0.1% the month before.
The figures will be a welcome relief for the chancellor and Keir Starmer, who have repeatedly said boosting economic growth is the government’s number one goal.
Reeves said: “For too long, politicians have accepted an economy that has failed working people. I won’t.
“After 14 years of flatlining living standards, we are going further and faster through our plan for change to put more money in people’s pockets.
“That is why we are taking on the blockers to get Britain building again, investing in our roads, rail and energy infrastructure, and removing the barriers that get in the way of businesses who want to expand.”
But shadow chancellor Mel Stride pointed out that economic growth was still down compared to when the Tories left office in July.
He said: “The chancellor promised the fastest growing economy in the G7, but her Budget is killing growth.
“Working people and businesses are already paying for her choices with ever rocketing taxes, hundreds of thousands of job cuts and business confidence plummeting.
“It does not need to be this way. Under new leadership, the Conservative Party will continue to oppose Labour’s disastrous decisions and stand up for businesses and working people up and down our country.”
Lib Dem Treasury spokesperson Daisy Cooper said: “The chancellor’s Budget has resulted in pitiful economic growth. Her complete pigs ear of a jobs tax will hammer small businesses, the backbone of our economy.
“Growth is the only way to rescue our public services and protect family finances. These woeful figures and the chancellor’s misguided policies will only prolong the misery.”