The unexpected increase eases pressure on the government, which has been trying to spur investment and development.

While the headline figure will be greeted with some relief in Downing St, the ONS data shows there is little to celebrate with a measure for growth by head of population showing a second quarter of contraction.

The UK economy unexpectedly grew in the final three months of last year following a boost to the construction and services sectors. The economy expanded by 0.1% between October and December, according to official figures.

Britain's economy unexpectedly grew by 0.1% in the final quarter of last year, official figures showed on Thursday, offering some respite from a downbeat economic picture facing finance minister Rachel Reeves,

The U.K. economy grew by 0.1% in the fourth quarter, beating expectations, after recording zero growth in the previous three months.