The UK economy ended 2025 on a weaker-than-expected footing, expanding by only 0.1% in the final quarter, a performance that underscored the sluggishness that has characterised the year. Economists had anticipated growth of 0.2%, but the latest figures reveal the UK continues to wrestle with the combined effects of trade disruptions and uncertainty surrounding Government spending plans. The marginal fourth-quarter rise matched the third quarter’s performance and confirmed that the economy is still struggling to gain traction. Data shows the GDP grew 0.1% in December, while November’s increase was revised down slightly to 0.2%. Chancellor Rachel Reeves has made reviving economic momentum central to her strategy for rebuilding Labour’s declining poll numbers. Her Autumn Budget doubled the Government’s fiscal room for manoeuvre, a move intended to stabilise the economic environment and encourage businesses to invest. Across 2025 as a whole, the UK economy grew 1.3%, up slightly from 1.1% the year before. Industrial production offered some support in the final quarter, rising 1.2%, but this was offset by a sharp 2.1% contraction in construction.