The Chancellor has been humiliated even further as figures shows the economy is going down the drain.
Latest figures reveals that “Labour is trashing our economy” as it grew just 0.1% in January as a result of the Chancellor’s brutal Autumn Statement.
Rachel Reeves said, “The world has changed and across the globe we are feeling the consequences.
She was asked if Trump’s tariffs attacks is affecting growth, Reeves said, “I believe, this Government believes, in free and open trade, and will continue to make that point.
“We are in negotiations at the moment for an economic agreement with the United States to try and ensure that British exporters are supported to export all around the world, including to the United States, and to ensure that they don’t push up prices for UK consumers with more tariffs.”
The Tory leader Kemi Badenoch said, “Labour is trashing our economy latest…
“This is NOT unexpected.
“Starmer and his government are choking the life out of business.
“Why? Because they don’t that government doesn’t create growth, business does.”
ONS Director of Economic Statistics Liz McKeown said, “The economy shrank a little in January but grew in the latest three months as a whole, with the overall picture continuing to be of weak growth.
“The fall in January was driven by a notable slowdown in manufacturing, with oil and gas extraction and construction also having weak months.
“However, services continued to grow in January led by a strong month for retail, especially food stores, as people ate and drank at home more.”
Nicholas Hyett, Investment Manager, Wealth Club said, “This is not the news the Chancellor would have wanted before this month’s Spring statement, with the economy shrinking when it had been expected to show modest growth.
“The slowdown has been driven by a big slowdown in manufacturing output – unsurprising given the very uncertain outlook for exports with ever changing tariffs.
“Services too has slowed dramatically, particularly in sectors like accommodation and food services which expect to be hit hard by higher living wage and employer national insurance contributions in April.
“That’s the really worrying thing about these numbers. Tariffs and increased labour costs were more worries than reality in January, the month covered by these numbers. Those worries will soon be transforming into realities. That leaves plenty of room for economic growth to deteriorate further, with far fewer catalysts to spark an economic recovery. We could be at the start of a long slow slide into recession.”
Julian Jessop, Economics Fellow at the Institute of Economic Affairs, said, “The latest official data are perhaps not as bad as they look, but they do confirm that the UK economy made a poor start to 2025.
“Nonetheless, this feeble rate would remain well short of the numbers baked into the OBR’s forecasts for last October’s Budget.
“And this is even before the main measures actually kick in next month.
“In short, the economy is on a knife edge, and the Chancellor could be about to tip the UK into a full-blown recession.”
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