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

Consumers and businesses are not yet taking the hint despite six interest rate cuts

• UK economy grows by only 0.1% amid falling business investment

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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".