Economy grows 0.1% in November but "mood in the business community has been decimated"

We are stuck in no growth Britain with no resignation and no growth Rachel. Hopefully the Bank of England take this into account when they meet next month as unfortunately it looks like it is down to them to kickstart the economy.

For us, it was business as usual to the very end of 2025 as we saw a lot more activity than we usually would in the run-up to Christmas. The Budget has put some pressure on for completions by the end of March but I’m confident that won’t stop the momentum from April onwards. I truly believe people are coming to accept that we never know what’s round the corner with the government and less people are putting their lives on hold because of it.

The UK economy grew just 0.1% in November 2024, with no growth over the three months to November, reflecting ongoing stagnation. The slight rebound in services is overshadowed by October’s decline and concerns over the impact of April’s National Insurance changes on businesses. With recession risks looming, the Bank of England may face pressure to cut the base rate in February to support activity, despite inflation concerns. Labour’s supposed “budget for growth” has yet to inspire confidence or deliver tangible results, highlighting the need for more immediate and effective fiscal measures to address the UK’s economic challenges.

What a mess UK Plc is in. No real growth during the quarter and no plan for growth from the Chancellor do not bode well. The pressure is now on the MPC to make the important decisions. Ones that will get this country out of the mess that it is in financially. The only problem is their toolbox is limited.

Stagnant Britain. The figures show the smallest of increases but there is no feel of growth on the streets. The government needs to take action to kickstart this economy and quickly.

The UK economy eked out 0.1% growth in November, below expectations, compared with the 0.2% month-on-month growth expected by economists. Monthly real gross domestic product (GDP) fell by 0.1% in October, following a decline of 0.1% in September and growth of 0.2% in August. Government borrowing costs are at a multi-decade high and big question marks remain over their fiscal plans amid the high tax burden on businesses with further potential headwinds such as the trade tariffs once President-elect Donald Trump takes office next week on 20 January. On top of this we have the fiscal and economic challenges that have dogged the Labour government and Chancellor Rachel Reeves since her now infamous 30 October budget. This puts the Bank of England in a bind. Do they lower interest rates at their next meeting on 6 February to rescue the moribund UK economy or do they focus on the resilient inflationary pressures in the economy?

A meagre 0.1% GDP growth in November paints a stark picture of an economy barely keeping its head above water. Even with services making a positive contribution, this level of growth essentially amounts to economic stagnation. The absence of meaningful expansion across key indicators suggests the UK economy remains firmly stuck in neutral, highlighting the urgent need for substantial changes to reignite genuine growth and economic momentum.​​​​​​​​​​​​​​​​

Before anyone get’s excited by the 0.1% growth, as if you could, these figures don’t yet show any impact from the Budget. The next set of data will show if it really was a budget for growth, or as we all suspect a budget for recession.

Fundamentally we are a country with zero growth and no real plan to kick-start our economy. The budget has truly affected everyone, employees are not immune to its effect as employers won't be able to grow their businesses and cannot take another hit on dwindling profit margins. Mortgage borrowers will bear the brunt of this again, with their ever-increasing monthly payments and no hope of future rate cuts for a long time.