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UK economy grew more than expected in first three months of year | |
(32 minutes later) | |
The UK's economy grew by more than expected in the first three months of the year, according to the latest official figures. | |
The economy expanded by 0.7% in the January-to-March period, which was stronger than the 0.6% that analysts had forecast. | |
The Office for National Statistics (ONS) said growth was largely driven by the UK services sector, although production also "grew significantly". | |
The economy grew by 0.2% in March, the ONS said, which was also better than the zero growth that had been forecast. | |
Chancellor Rachel Reeves said the latest figures showed "the strength and potential of the UK economy". | |
"In the first three months of the year, the UK economy has grown faster than the US, Canada, France, Italy and Germany," she added. | |
Shadow chancellor Mel Stride pointed out that both the Office for Budget Responsibility and the International Monetary Fund had downgraded the UK's growth forecast for this year. | |
He also criticised the rise in employers' National Insurance payments, which came into effect in April, calling it a "jobs tax". | |
"Labour inherited the fastest-growing economy in the G7, but their decisions have put that progress at risk," he said. |