Chancellor Rachel Reeves has said there is “more to do” to strengthen Britain’s economic performance after official figures showed the UK economy grew by just 0.1 per cent in the final quarter of last year.

The modest expansion, released by the Office for National Statistics, followed similarly subdued growth in the preceding quarter and underscored the fragile state of the recovery as the country entered the new year.

While the data confirmed that the UK avoided contraction at the end of the year, the pace of growth fell short of earlier expectations and highlighted persistent pressures across key sectors.

Services output, which accounts for the majority of economic activity, remained broadly flat during the quarter, while construction contracted and business investment showed signs of weakness.

Manufacturing and production provided limited support, but not enough to generate stronger overall momentum.

Responding to the figures, Reeves said the government recognised that the pace of growth remained insufficient and reiterated her commitment to policies aimed at boosting investment, productivity and household incomes.

She pointed to recent measures designed to encourage private-sector expansion and improve long-term economic resilience, while acknowledging that global conditions and domestic structural challenges continue to weigh on performance.

Economists noted that the weak quarterly reading reflects a combination of higher borrowing costs, subdued consumer confidence and cautious corporate spending.

Although inflation has moderated compared with its recent peak, its lingering effects on real incomes and demand remain evident.

The latest data intensify pressure on the government to deliver stronger growth as it seeks to stabilise public finances and restore confidence.

Reeves emphasised that sustainable expansion would require continued reform and disciplined fiscal management, signalling that the coming months will be critical in determining whether the UK can build firmer economic momentum.