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Bank of England must “go further and faster” with rate cuts to help boost living standards – TUC

  • GDP grew 0.1% in the three months to December 2025 and 0.1% into December 2025 
  • Consumer demand grew by 1.0% in 2025 after falls in 2023 and 2024, but slowed to 0.2% in Q4 
  • TUC General Secretary Paul Nowak says ministers must stay “laser-focused” on improving living standards this year 

Commenting on ONS figures showing 0.1% GDP growth in the three months to December 2025, and 0.1% GDP growth in December 2025, TUC General Secretary Paul Nowak said:  

“It’s welcome that the economy kept growing in December, and last year’s growth of 1.3% was the strongest for three years. 

“But many workers are not yet feeling the benefit in their pockets. Household incomes are still being squeezed by a relentless cost-of-living crisis.  

“Many working families don’t have any money left over to spend on the things that keep our economy moving – meals out, shopping on the high street, and family days out. That’s bad for families and bad for the wider economy. 

“This doom loop must end. Ministers must stay laser-focused on cutting working people’s household costs and improving living standards this year. 

“And the Bank of England must go further and faster with quickfire interest-rate cuts in the months ahead. 

“Britain needs to finally move on from the cost-of-living crisis that’s kept us stuck for too long – the priority must be helping families to spend and businesses to invest.” 

Editors note
  • About the TUC: The Trades Union Congress (TUC) exists to make the working world a better place for everyone. We bring together the 5.3 million working people who make up our 47 member unions. We support unions to grow and thrive, and we stand up for everyone who works for a living. 

Contacts: 

TUC press office  
media@tuc.org.uk   
020 7467 1248 

 

Original article link: https://www.tuc.org.uk/news/bank-england-must-go-further-and-faster-rate-cuts-help-boost-living-standards-tuc

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