UK economy grew more than expected in first three months of year

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.