After months of gloom, a ray of light for Reeves

Britain's faster than expected growth in the first three months of the year is welcome news for a Labour government desperate to make good on its promise of kickstarting the economy.

- Heather Stewart

Under siege from Nigel Farage's Reform and under pressure from its own MPs over tax and spend, Labour will now point to the 0.7% increase in GDP over the first quarter as evidence the hard yards are starting to pay off.

It follows two sickly quarters after Labour came to power last year, shouting about its terrible economic inheritance. GDP growth was zero in July-September 2024, and only 0.1% in the final three months of the year.

The Office for National Statistics said the services sector, the largest contributor to overall output growth, increased by 0.7% in the latest quarter. The smaller manufacturing sector also contributed, with production rising by 1.1%. Construction, which Labour is relying on for 1.5m new homes, was flat.