GDP reaction: Growth “proof that a serious, long-term approach to public finances works”, says IPPR

• In the first quarter of 2025, the UK economy grew by 0.7 per cent. This is an increase on the final quarter of 2024, when the growth rate was 0.1 per cent. 

• This compares to the US economy which shrank by 0.3 per cent. This is a large drop in growth on the final quarter of 2024, when the rate was 2.4 per cent.

   

Reacting to today’s growth estimates, Pranesh Narayanan, research fellow at IPPR, said:

“While growth in the UK economy is picking up, the US is heading in the opposite direction – this is proof that a serious, long-term approach to public finances works.

“Increased global economic insecurity, tariffs and trade wars will make it difficult to sustain this momentum. But if the government uses the imminent industrial strategy to provide clarity, consistency and certainty to businesses, they will be able to drive investment in future-facing industries like clean manufacturing and digital services, which will be core to the UK’s future growth prospects.

“Crucially, the Chancellor needs to use the benefits of growth to provide funding and support for the schools, hospitals and local councils that we all rely on.”