SNP accuse Chancellor Rachel Reeves of ‘economic chaos’ despite surprise GDP growth

The SNP have accused the Chancellor of overseeing “economic chaos”, despite Britain’s economy unexpectedly eking out growth in the final three months of last year.

Official figures showed gross domestic product (GDP) edged 0.1 per cent higher between October and December, defying forecasts by analysts and the Bank of England for a contraction in the quarter. The result followed zero growth in the previous three months, which had led to fears the UK was on the brink of recession.

Chancellor of the Exchequer Rachel Reeves recording a broadcast clip in Downing Street, central London | PA Video/PA Wire

However, the data also showed living standards under pressure, with real GDP per head falling by 0.1 per cent in the final quarter of last year and by 0.1 per cent across 2024 overall.

The SNP claimed the figures showed the “weakest possible growth” and that people were getting poorer.

SNP economy spokesperson Dave Doogan said: “The Labour Party promised to fix Brexit Britain’s broken economy but instead it has made things even worse - with the weakest possible growth, GDP per person falling, increased unemployment, rising prices and looming austerity cuts.

“Families and businesses across Scotland are paying the price for the Labour government’s failure and its damaging policies, including the National Insurance tax hike and the political choice to stay out of the EU single market, which is costing Scotland billions of pounds in lost growth, trade and investment every year.

“Unless the Labour government urgently changes direction, the UK will face another lost decade of stagnation and decline, with families hit in the pocket as bills rise, wages are squeezed and people get poorer.

Dave Doogan accused the Chancellor of causing “economic chaos”

"The Chancellor has confirmed she possesses only a notional grasp of fiscal cause and effect and now, on top of failing to fix 14 years of Tory economic decline, she's added her own economic chaos into the mix. Her unforced fiscal errors are costing business and workers dearly."

The Office for National Statistics (ONS) estimated the economy expanded by 0.4 per cent in December, which is better than most analysts expected, and marked a pick up following a 0.1 per cent rise in November and a 0.1 per cent fall in October.

It eases the immediate pressure on the Chancellor, but there are still worries over whether she will meet her fiscal rules, as well as the impact on businesses and jobs from recent Budget measures.

Speaking to broadcasters following the figures, Ms Reeves said: “The growth numbers have come in higher than many expected, but I’m still not satisfied with the level of growth that our economy is achieving.

“And that’s why I am determined to go further and faster in delivering the economic growth and the improvements in living standards that our country deserves.”

The ONS said an uptick in services and production drove the growth in December. The result was the fastest monthly growth since March last year. However, experts said the economy was not out of the woods yet, with the Bank last week halving its forecast for growth to just 0.75 per cent for 2025.

Warnings are mounting that moves to hike National Insurance contributions and the minimum wage at last October’s Budget will lead to businesses raising prices and slashing jobs.

Shadow chancellor Mel Stride said Ms Reeves’s Budget was “killing growth” and working people and businesses were “already paying for her choices”.