Corin Crane, chief executive of Coventry and Warwickshire Chamber, said: “The latest growth figures are positive and it’s important for business morale to kick off the year with a set of better-than-expected numbers.

“There was real fear in advance of the Budget that the economy would slow but that hasn’t materialised and looks as though the resumption of production at JLR has also supported this bounce back.

“As well all know, the economy has been pretty flat for a number of years now and the latest figures show that there is still some way to go before we can start to feel like we are in a period of long-term, sustainable growth.

“I believe the next 12 months are vital for the government to implement its policies for growth, so it starts to have a real impact on businesses and the wider economy.”

Stuart Morrison, research manager at the British Chambers of Commerce, said: “Better than expected GDP data suggests the impact of pre-Budget jitters among businesses may have been less than predicted.

“Firms will welcome confirmation that the economy bounced back to growth of 0.3 per cent in November itself, with the more reliable three-month average showing more modest growth of 0.1 per cent. 

“The reality of the Chancellor’s statement, when it came, was no significant new taxes for firms, but a lack of game changing measures to properly kickstart the economy. Firms are telling us they’re still cautious about investing and recruiting, meaning growth will stay limited for the foreseeable. 

“Our latest economic forecast suggests a challenging year ahead for businesses, with a projected expansion in GDP of just 1.2 per cent. Businesses are ambitious to drive forward better growth, but they need help. 

“2026 must be a year of delivery on growth, with government and business working in partnership. That means action from policymakers on igniting investment, powering productivity and transforming trade.”