𝓤𝓷𝓲𝓽𝓮𝓭 𝓝𝓮𝔀𝓼

Rachel Reeves got yet more bad news in her in-tray on Friday, as official figures suggested Britain’s economy recorded zero growth in January. The Office for National Statistics (ONS) said there was no growth in gross domestic product (GDP) in the first month of of this year. Most economists had expected to see 0.2% growth in January.

It comes after GDP was just 0.1% higher in the final three months of 2025. The new figures have sparked fears that the UK could take a heavy hit from economic impacts related to the war in the Middle East as it struggles to establish steady growth gains.

Ms Reeves insisted that the Government has the right economic plan and is working to stimulate growth and reduce costs for Britons in an “uncertain world”. But the Tories have claimed Labour’s “mismanagement” of the public finances has left the country at risk amid the fallout from the US-Iraeli attacks on Iran.

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Reacting to the ONS release today, Ms Reeves said: “Our economic plan is the right one, but I know there is more to do.

“In an uncertain world, we are building a stronger and more secure economy by cutting the cost of living, cutting national debt and creating the conditions for growth to make all parts of the country better off.”

But Shadow Chancellor Sir Mel Stride said the data “confirmed the economy is flatlining – with no growth in the latest month”.

“This follows the OBR halving the growth forecast for 2026,” he added.

“At the Spring Statement, Labour claimed they had the ‘right economic plan’, doubling down on their failed policies. Labour’s economic mismanagement has left us vulnerable to the potential impacts of events in the Middle East,” Sir Mel said.

“They must now axe the fuel tax, back North Sea oil and gas and come forward with a proper plan to cut the deficit and get the benefits bill down.”

Tory leader Kemi Badenoch added: “Britain’s economy is flatlining, battered by Labour’s taxes and regulations.

“Keir Starmer isn’t thinking about economic growth, he’s too distracted by the Mandelson scandal and clinging on to his own job. We need to cut spending, cut taxes and get Britain working again.”

The ONS’s director of economic statistics Liz McKeown, said the “overall picture remains subdued” in the UK economy. Labour singled out growing the economy as a number one priority after winning the last general election by a landslide.

Meanwhile, in a Downing Street meeting today, Ms Reeves and energy secretary Ed Miliband will be pressing petrol retailers and energy suppliers to to make sure drivers aren’t being ripped off by forecourts pushing up prices too high in response to the conflict in the Middle East, Treasury said, as per PA.