Weak consumer spending hit GDP during the last 3 months of 2025. The year began with little momentum.
The UK economy limps along at 0.1% growth. However, there are reasons for optimism in 2026.
Rachel Reeves is quoted to have shared that the government has the correct economic plan to build a stronger and more secure economy.
The UK economy had expanded only by a mere 0.1% during the final 3 months of last year, according to official data. Falling business investment and weak consumer spending had led to little momentum when moving into 2026.
Figures disclosed by the Office for National Statistics (ONS) reflect that the economy grew at the same rate of 0.1% as the previous 3 months. This was less than the 0.2% rise that economists had been predicting.
The economy grew by 1.3% in 2025. This reflects a growth improvement of 1.1% over the previous year of 2024. However, it was below the official forecast of 1.5%. The ONS said that the economy also expanded by 0.1% on a monthly basis in December 2025. This reading reflected a slight decline from the 0.2% achieved in November ’25, a figure that was scaled down from an initially disclosed 0.3%.
The downbeat data was revealed as Rachel Reeves prepares to give a major speech in the coming weeks. This speech would focus on affirming her commitment to the intended growth plan. The speaker revives the term ‘securonomics’ to describe the approach.
The chancellor intends to deliver a public lecture during a deliberate low-key House of Commons statement that marks the spring forecast on Tuesday, 3 March. This would reiterate her strategy and set out priorities for 2026.
Treasury sources said that these will include the opportunities the government sees in AI. An adviser called her an “optimist” about the technology, besides the intentions disclosed for closer ties with the EU.
