New data from the Office for National Statistics shows that UK GDP fell by 0.3%

Official data showed that UK gross domestic product (GDP) fell slightly between October and December last year.

The Office for National Statistics (ONS) said GDP fell by 0.3%, following no growth between July and September 2023.

Chancellor Jeremy Hunt said in response to the Office for National Statistics’ quarterly GDP National Accounts: “Last year was difficult because interest rates had to be raised to bring inflation down, but we can see that our plans are working.

“Inflation has fallen sharply from over 11% to 3.4%, the economy grew in January and real wages have increased for the eighth consecutive month.

“Our cuts to National Insurance will boost economic growth by rewarding work and putting more than £900 a year back into the pockets of ordinary earners.”

Today’s data has not been revised from statisticians’ previous estimates. However, the small revision was not visible in the headline figure, which was rounded to one decimal point, meaning the cumulative decline over the two quarters was 0.4%, rather than the 0.5% previously estimated.

Lib Dems responded to the figures saying the government had “no plans for growth”

Previously, Quango estimated that GDP grew by 0.2% in January, compared with a forecast for a 0.1% decline in December.

At the time, the company said a strong retail sales month helped drive growth in January, with consumers taking advantage of post-Christmas sales and spending more in supermarkets.

The Office for National Statistics estimates that the services sector (which also includes hospitality, culture and leisure industries) grew by 0.2% this month and was the largest contributor to GDP growth.

Activity among housebuilders was said to have improved, also helped by new work as well as repairs and maintenance, after a year of downturn in the overall property market.

GDP per capita, which is the distribution of economic output among the total population, will decrease by 0.7% by 2023, according to the Office for National Statistics.

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