UK Economy Hits Slowest Growth Since 1920s

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“There's Less Money In People's Pockets!” |
The UK economy faces its weakest growth in a century, with GDP rising just 0.1% in Q4 2025 and 1.3% for the full year, marking what economists call the “most dismal decade” since the 1920s. Chancellor Rachel Reeves’s tax hikes, steep minimum wage increases, business rates reforms, and worker protections are blamed for slowing private sector activity.

Quarterly growth fell steadily throughout the year, contradicting Reeves’s claim that the economy was “turning a corner.”

Experts warn that 2026 could see growth fall further to 0.9%, with GDP per capita declining, leaving households poorer. Critics, including Tory Shadow Chancellor Sir Mel Stride, say Labour’s policies are failing to deliver the promised economic recovery.

Peter Cardwell interviews Economics Editor At The Spectator, Michael Simmons.

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