UNIONS have demanded action over Britain’s “increasingly dire” economic forecast following “meagre” growth.

Gross domestic product (GDP) increased by 0.6 per cent between January and March, the Office for National Statistics (ONS) said today.

This was higher than the 0.5 per cent growth that most economists had been expecting, and marks the strongest since the first quarter of 2025, when GDP also increased by a revised 0.6 per cent.

The ONS also said GDP increased by 0.3 per cent in March, surprising economists who had been expecting growth to slow following the onset of the war.

Chancellor Rachel Reeves responded to the figures to warn against threatening the “stability” of the economy, amid uncertainty over Prime Minister Sir Keir Starmer’s future as leader.

She said: “Now is not the time to put our economic stability at risk. To do so would leave families and business worse off.”

TUC general secretary Paul Nowak said that it is “positive that our economy was stronger at the start of the year.

“But after years of falling living standards, working people need both sustained growth and action to ensure that gains are fairly shared,” he said.

“Families and businesses are battling against a life-shattering cost-of-living crisis, and fear their situation will only get worse due to [US President] Donald Trump’s illegal war in Iran.

“So as rising petrol, gas and mortgage costs heap more pressure on family budgets, the government must be laser focused on jobs and living standards.”

Mr Nowak said working people, their families and communities “must be at the centre of every decision,” adding: “That means action must be taken now to protect families in the face of rising bills, and to support more young people into good jobs and training.

“And banks’ bumper profits must be taxed fairly, to raise the funds needed to shield households and firms from the damaging impacts of the war.”

Unite general secretary Sharon Graham said: “The forecast for the UK economy is increasingly dire.

“The meagre growth we’ve had this quarter is set to be as good as it gets this year.”

Warning that workers “can’t afford to suffer further declines in living standards,” she called for a “complete reset” starting with “massive” investment in infrastructure and public ownership of key industries and utilities.