The UK economy grew by a stronger than expected 0.3% in November despite uncertainty around the chancellor Rachel Reeves’s budget, official figures show.

Figures from the Office for National Statistics (ONS) on Thursday showed the improvement, up from a 0.1% fall in October.

Forecasters had expected a more modest 0.1% expansion. The better-than-expected data will be good news for Reeves who hopes an economic turnaround will help Labour’s fortunes.

Economic output earlier in 2025 was hit by the cyber-attack on the carmaker Jaguar Land Rover, which depressed vehicle production. The bounceback appears to have contributed to November’s growth, with a 25% improvement in motor vehicle manufacture during the month.

The services grew by 0.3% in November, while production grew by 1.1%, and construction fell by 1.3%, the ONS said.

Further evidence of the health of the economy will come in the next week, however, with inflation and unemployment data due to be released. Reeves is keen to see more rate cuts by the Bank of England as part of the government’s drive to cut the cost of living.

The chancellor delivered her second tax-raising budget on 25 November, after a febrile period of speculation. The flurry of on-off tax rumours was blamed by business groups for deterring investment and consumer spending.

Reeves is expected to announce additional support for the hospitality industry in the coming days after a backlash over changes to the business rates regime.