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The UK economy unexpectedly grew by 0.1 per cent in the fourth quarter, in a surprise boost for Labour as it seeks to fulfil its pledges to re-energise the economy.
The GDP figure for the final three months of the year from the Office for National Statistics compared with zero growth in the quarter that ended in September.
Economists had forecast a 0.1 per cent fourth-quarter contraction, according to a poll from Reuters.
Chancellor Rachel Reeves has vowed to make growth the government’s chief mission, throwing her support behind projects including a third runway at London’s Heathrow airport and transport links between Oxford and Cambridge.
But the economy has repeatedly disappointed since Labour took power, stagnating in the second half of last year.
The Office for Budget Responsibility is expected to cut its growth forecasts in the upcoming Spring Statement, hitting tax revenues and adding to the fiscal pressures facing the chancellor.
The fiscal watchdog told Reeves last week that the headroom she previously had against her key budget rule had been wiped out by factors including poor economic data.
This is a developing story