The British economy barely grew in the final three months of 2025, with experts blaming uncertainty surrounding the government’s budget for lower than anticipated business investment and consumption.

Feb 12 (Reuters) - Britain's economy barely grew in the final quarter of 2025 as activity fared worse than initially estimated during the run-up to finance minister Rachel Reeves' budget, official figures showed on Thursday.

UK GDP rose 0.1% in Q4 2025 as manufacturing offset flat services and a 2.1% construction drop, with rate cuts ahead.

Skyscrapers of the Canary Wharf commercial district are seen with The Shard building and construction cranes reflected in a perimeter glass wall of the viewing area of Garden at 120, in the City of London financial district, in London, Britain, September 23, 2025. REUTERS/Toby Melville

They just thought it was a bunch of cocky Mancunians talking bullshit,” says Jim O’Neill, the former Treasury minister and Goldman Sachs chief economist. “But the more time goes on and the more the evidence becomes clear,

But the UK is expected to lag behind global growth which is projected at 3.3 per cent in 2026 and 3.2 per cent in 2027

Britain’s economy grew less than expected in the final quarter of 2025, according to official data Thursday, dealing a fresh blow to embattled Prime Minister Keir Starmer and his government.

The UK economy had sluggish growth to end of the year undershooting expectations pencilled in by City economists.