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.
But 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.
Liberal Democrat Treasury spokesperson Daisy Cooper said the data was “positive news”, but there was “no time for complacency”.
Steve Bulley President of Dorchester Chamber for business added: “The latest UK economic growth figures indicate a stronger-than-expected start to 2025, with GDP rising by 0.7% in the first quarter. While this provides short-term optimism, smaller businesses and sole traders, must remain cautious.
“The recent increase in national insurance contributions and global trade tariffs could create financial pressures, particularly for businesses reliant on imports and exportsin the next quarter.
“Smaller Chamber members will need to focus on financial resilience, strategic planning, and leveraging local business networks for support. Change is a constant and a proactive approach will be key to maintaining stability in a shifting economic landscape.”
