The UK’s financial system stalled within the first month of the 12 months in a blow to the Chancellor.
Chancellor Rachel Reeves (Picture: Getty)
Britain’s financial system recorded zero development in January, in accordance with official figures.
The Workplace for Nationwide Statistics (ONS) mentioned there was no development in gross home product (GDP) within the first month of 2026.
It comes after GDP was simply 0.1% larger within the last three months of final 12 months, whereas there are fears the UK will probably be hit by the Center East battle.
Reacting to the figures, Chancellor Rachel Reeves mentioned: “Our financial plan is the suitable one, however I do know there’s extra to do.
“In an unsure world, we’re constructing a stronger and safer financial system by reducing the price of dwelling, reducing nationwide debt and creating the situations for development to make all components of the nation higher off.”
Learn extra: Keir Starmer humiliated over gas obligation improve at PMQs
The Tories warned that Labour’s “financial mismanagement” has left the UK in danger amid the Iran battle.
Shadow Chancellor Sir Mel Stride mentioned: “This morning, the ONS confirmed the financial system is flatlining – with no development within the newest month. This follows the OBR halving the expansion forecast for 2026.
“On the Spring Assertion, Labour claimed that they had the ‘proper financial plan’, doubling down on their failed insurance policies. Labour’s financial mismanagement has left us susceptible to the potential impacts of occasions within the Center East.
“They need to now axe the gas tax, again North Sea oil and fuel and are available ahead with a correct plan to chop the deficit and get the advantages invoice down.”
Tory chief Kemi Badenoch added: “Britain’s financial system is flatlining, battered by Labour’s taxes and rules.
“Keir Starmer isn’t desirous about financial development, he’s too distracted by the Mandelson scandal and clinging on to his personal job. We have to minimize spending, minimize taxes and get Britain working once more.”
Liz McKeown, ONS director of financial statistics, mentioned the “total image stays subdued” within the UK financial system.
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Most economists had anticipated development of 0.2% in January.
Labour had insisted rising the financial system was its primary precedence after profitable the final normal election.
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