Rachel Reeves has had an unexpected boost after the UK economy grew at the end of last year after a better than predicted December.

Official figures released on Thursday morning showed the economy grew in the final quarter of last year after better-than-expected expansion in December. But the Chancellor Ms Reeves quickly warned that she was "not satisfied" with the level of growth as she wants to get more money in people's pockets.

The Office for National Statistics (ONS) said gross domestic product (GDP) edged 0.1% higher between October and December, following no growth in the previous three months. It came after the ONS estimated that the economy expanded by 0.4% in December, which is better than most analysts expected.

Speaking to broadcasters following Thursday's GDP figures, Ms Reeves said: "The growth numbers have come in higher than many expected, but I'm still not satisfied with the level of growth that our economy is achieving. And that's why I am determined to go further and faster in delivering the economic growth and the improvements in living standards that our country deserves."

Elsewhere Housing minister Matthew Pennycook told Times Radio: "Construction numbers are up, but we're not satisfied by these numbers. But on the other hand, we always knew that there was no silver bullet, no simple remedy to turning around 14 years of economic stagnation. We had to obviously come in, first off, and fix the public finances, put them on a sound footing, address that black hole that we discovered on assuming office.

"Then we've been focused on removing the regulatory barriers to growth that exist in my own area, that took the form of overhauling the national planning policy framework. So it's a pro-growth framework."

Be the first with news from Mirror Politics

In a speech at the end of January, Ms Reeves hit out at decades of indecision as she said low economic growth does not have to be Britain's “destiny”. She set out a raft of eye-catching housing, infrastructure and business projects, green-lighting plans for new transport links and multiple airport projects across the country.

In the most significant announcement, she finally declared her support for a third runway at Heathrow airport as part of the mega-package of plans to boost the economy. The Chancellor faced down critics to end the long-running political saga over the west London airport expansion.

Ms Reeves also said she was backing a 100,000-seat Manchester United stadium to create a "Wembley of the North" and backed the reopening of Doncaster Sheffield Airport as South Yorkshire Airport City. She also set out plans for a new 70-mile growth corridor between Oxford and Cambridge in a bid to create "Europe's Silicon Valley" - a move that could add up to £78billion to the UK economy by 2035.

Reacting to Thursday's growth figures, Senior Economist at the Resolution Foundation Simon Pittaway said: “Better than expected growth at the end of last year means that Britain has avoided another technical recession. But it remains mired in a living standards downturn, with GDP per person still below pre-pandemic levels.

“In recent weeks, the Chancellor has set out welcome plans to boost longer-term growth, but short-term action may be needed to get the economy out of its current slump. And with the Government constrained by its fiscal rules, which the Chancellor is already at risk of missing next month, many will be hoping the Bank of England can ride to the rescue with faster interest rate cuts.”

TUC General Secretary Paul Nowak said: "It’s good news that the economy returned to growth at the end of 2024. There is a lot of work still to do, but the Government’s approach is taking us in the right direction. After years of stagnation and falling living standards, families and businesses desperately need change.