Britain’s economy is expected to grow faster than previously forecast, according to Finance Minister Rachel Reeves, who presented her maiden budget to Parliament on Wednesday. In a landmark announcement, Reeves projected a 1.1% increase in the nation’s GDP for 2024 and a robust 2.0% expansion in 2025. These figures surpass the Office for Budget Responsibility’s (OBR) March estimates, which had anticipated a 0.8% rise in 2024 and 1.9% growth for the following year.

The revised forecasts reflect a shift in economic momentum under the new Labour government, which achieved a landslide victory in July after 14 years of Conservative leadership. Addressing MPs, Reeves underscored the government’s commitment to stability and long-term growth. “This government was given a mandate: to restore stability to our country and to begin a decade of national renewal,” she stated. “To fix the foundations and deliver change through responsible leadership in the national interest. That is our task. And I know we can achieve it.”

Reeves emphasized that sustained investment is central to the new administration’s growth strategy. “The only way to drive economic growth is to invest, invest, invest,” she declared.

Britain’s economic resilience comes as the annual inflation rate has fallen below the Bank of England’s target of 2.0%, helping ease the cost-of-living pressures that have weighed heavily on households. The International Monetary Fund (IMF) this month also backed Britain’s outlook, predicting the same 1.1% growth rate for 2024.

While optimism surrounds the near-term outlook, the OBR has tempered expectations for 2026-2028, revising growth forecasts downward. However, Reeves’ budget aims to lay a solid foundation for economic stability and recovery, signaling Labour’s focus on both immediate relief and sustainable future growth.