Consumers and businesses are not yet taking the hint despite six interest rate cuts

• UK economy grows by only 0.1% amid falling business investment

• Business live – latest updates

Rachel Reeves has suggested 2026 is the year Labour can start to deliver on its economic promises; but 0.1% GDP growth in the final quarter of last year is hardly the springboard she was hoping for.

In the supportive message on X she sent on Monday as Keir Starmer’s future appeared under threat, the chancellor claimed “the conditions for the economy to grow are there”.

GDP in last three months of 2025 also hit by weak consumer spending, with little momentum going into this year

• Analysis: UK economy limps along at 0.1% growth – but there are reasons for optimism in 2026

The UK economy expanded by only 0.1% in the final three months of last year, according to official data, as falling business investment and weak consumer spending led to little momentum going into 2026.

Figures from the Office for National Statistics (ONS) show that the economy grew at the same rate of 0.1% as the previous three months. This was less than a 0.2% rise that economists had been expecting.