Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

UK economy posts surprise growth at end of 2024, but concerns remain

by February 17, 2025
February 17, 2025
UK economy posts surprise growth at end of 2024, but concerns remain

The UK economy defied expectations by posting 0.1% growth in the final quarter of 2024, according to new Office for National Statistics (ONS) data.

Analysts had predicted a contraction, but strong performances in construction, pubs, bars, and machinery manufacturing helped to keep the economy in positive territory.

In December alone, the economy grew by 0.4%, driven by a busy month for film distribution firms, hospitality, and industrial production. However, the overall picture remains fragile, with living standards slightly lower than in 2023 and concerns that the government’s April tax rises could weigh on businesses.

Despite the unexpected growth, businesses remain wary about the outlook for 2025. Employers are facing higher National Insurance costs, rising minimum wages, and reduced business rates relief, all of which could limit their ability to offer pay rises, invest, or create jobs.

The Bank of England has already halved its UK growth forecast for 2025, warning that the combination of higher employer costs, global uncertainty, and trade tariffs imposed by Donald Trump’s US administration could hold back recovery.

Paul Dales, chief UK economist at Capital Economics, said the economy was “all-but stagnating” as businesses struggled with cost pressures. He pointed to Chancellor Rachel Reeves’s Budget tax rises as a key factor dampening business confidence.

“Business sentiment is on the floor, with investment and consumer spending down. Overall, the economy is unlikely to do more than move sideways over the next six months,” he warned.

The latest figures will provide some relief for Prime Minister Sir Keir Starmer, who has made economic growth a key priority. However, a separate ONS measure, real GDP per head, showed a 0.1% decline in living standards compared to 2023.

Reeves acknowledged the long-term economic challenges, saying: “It’s not possible to turn around more than a decade of poor economic performance in just a few months, but we are doing what is necessary to bring stability to the economy.”

However, opposition figures were quick to criticise the government’s handling of the economy.

Shadow Chancellor Mel Stride accused Reeves of “killing growth”, blaming her policies for rising business taxes, job losses, and plummeting confidence.

Liberal Democrat Daisy Cooper called the government’s tax plans a “complete pig’s ear”, warning they would hammer small businesses, the backbone of the economy.

While private housing construction projects boosted the economy, homeowners cut back on repairs and maintenance, reflecting household financial pressures.

Meanwhile, computer programming, publishing, and car sales saw weaker trade, balancing out the gains from manufacturing and hospitality.

With higher taxes and weaker business investment on the horizon, economic growth is expected to remain subdued. The government insists it is taking steps to “put more money in people’s pockets”, but concerns persist over whether fiscal policy is supporting or hindering recovery.

The coming months will be crucial in determining whether the UK economy can sustain its momentum or whether sluggish growth and falling living standards will dominate 2025.

Read more:
UK economy posts surprise growth at end of 2024, but concerns remain

0
FacebookTwitterGoogle +Pinterest
previous post
Blue Origin to cut 10% of workforce as it ramps up rocket launches
next post
UK pushes for exemption from Trump’s steel tariffs

You may also like

Responsible Debt Collection in the UK: Balancing Profit...

August 23, 2023

Britain’s biggest companies consider backing new ‘CBI replacement’...

April 22, 2023

Multitude of daggers from velvet sheaths are thrown...

October 10, 2022

How to Automate SharePoint Migration Using ShareGate

April 23, 2025

Barclays Leads Complaints List for Small Business Account...

April 14, 2024

UK can become a “pioneer of responsible AI...

October 30, 2023

Loss of tax-free tourist shopping blamed for Selfridges...

May 9, 2024

Abound Secures £800 Million Funding Round with Backing...

May 7, 2024

Tips for Protecting Your Ageing Parents

October 28, 2022

Sustainable Ventures invests 12 times more in female-founded...

July 3, 2024

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Trump warns of ‘serious consequences’ if Elon Musk funds Democrats

      June 7, 2025
    • Musk jokes about reconsidering stance on Big Beautiful Bill after Schiff’s praise

      June 7, 2025
    • Musk deletes explosive posts about Trump and Epstein files

      June 7, 2025
    • House witness flips script on Dem who ambushed him during hearing with unearthed tweet: ‘Iceberg is ahead’

      June 7, 2025
    • Call with China’s Xi, and Trump-Musk exchange fueled barbs during 20th week in office

      June 7, 2025
    • Trump’s conservative allies warn Congress faces critical ‘test’ with $9.4B spending cut proposal

      June 7, 2025

    Categories

    • Business (8,152)
    • Investing (2,019)
    • Politics (15,568)
    • Stocks (3,136)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved