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The Guardian - UK
The Guardian - UK
Business
Heather Stewart Economics editor

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

Office for National Statistics Rachel Reeves United Kingdom Economy Sir Keir Starmer United States
A shopper on Oxford Street in London, Britain, looks at her phone while walking past a sale sign.
The Treasury will be hoping that another rate cut, alongside its anti-inflation measures, will cheer up wary consumers and reassure businesses. Photograph: Andy Rain/EPA

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”.

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