The United Kingdom's economy hired 0.1 percent in January in a blow to Rachel Reeves and Sir Keir Starmer's growth, according to the National Statistics Office (ONS).
A few weeks before the Chancellor delivers his spring statement establishing government spending plans, the ONS said the economy began to reduce the year.
The fall of the Gross Domestic Product (GDP) was a shock, and most economists expected to increase 0.1 percent in the first month of the year. Responding to the fall, the conservatives described the “growth murderers”
But, during the three months until January, it was estimated that GDP grew by 0.2 percent, driven by growth in the service sector.
The director of Economic Statistics of ONS, Liz McKeown, said that the figures continued to show “weak growth” under labor.
She said: “The January fall was driven by a remarkable deceleration in manufacturing, with extraction and construction of oil and gas also with weak months.
“However, the services continued to grow in January led by a strong month for retail trade, especially food stores, since people ate and drank more at home.”
Mrs. Reeves said that Great Britain was “feeling the consequences” as “the world has changed”, changing the guilt of the deceleration to international factors instead of its own budgetary measures.
He added: “That is why we go more and faster to protect our country, reform our public services and initiate economic growth to comply with our change plan.
“And why we are launching the greatest sustained increase in defense spending since the Cold War, mainly remodeling the British State to deliver working people and their families; and facing blockers so that Great Britain build again. “
But the conservatives described the Labor Government as a “growth murderer” after the fall, pointing out policies such as the increase in national labor insurance, which enters into force in April.
Shadow's chancellor, Mel Stride, said: “It is not surprising that growth has decreased again, after any growth in the last three months of 2024.
“After constantly speaking of Britain, increasing taxes to register ups and downs and crush business with their extreme employment legislation, this government is a growth murderer.
“The work inherited the fastest growing economy in the G7, but since the confidence of the business has arrived and jobs are being lost.
“The Chancellor has 12 days until its emergency budget: it must think again or working people will continue to pay the price of a Labor Government without any commercial experience.”
When asked if Donald Trump was responsible for the economy of Great Britain who shrunk, Sir Keir's official spokesman said “no”.
Prime Minister's spokesman said: “We know that the cost of the life crisis is not over, and this government is determined to improve people, and that is why economic growth is the number one priority of the prime minister. Growth is what pays our public services and what allows investment in our hospitals and schools and, of course, what is more important, increases the standard of living for all, everywhere. ”
But he added: “Geopolitical uncertainty undoubtedly has an impact.”
But the liberal democrats said that the “miserable work budget has left our economy in life support.”
Vice President Daisy Cooper said: “The spring statement must deliver a very necessary shot in the arm.
“The Chancellor must admit that his budget has failed to reverse the years of conservative economic vandalism and present a new plan that unleashes the growth potential of small businesses on Earth.”
The workforce has turned the growth of the economy into its key priority since it won the elections last year, but the impulse has been slow in the midst of the fall in consumer confidence and the growing inflation.
And the head of Capital Economics Economics, the economist of the United Kingdom, Paul Dales, warned: “With the possibility that the highest taxes in April have left the feeling of business on the floor and the global deterioration of the context, it is unlikely that the economy strengthens a lot from here.”
A minister said that fixing the economy will take a “long time” after January.
Attention Minister Karin Smyth told Sky News: “Growth is in the heart of what we should do to fix the economy, and we know it will take a long time.”
“We know that the things we are implementing, some of the changes in the planning of the law, some of the things we are talking about in the NHS, causing people to work again, all those things will help.
“But we have had this low growth and stagnant economy during the last decade. That is what causes so many problems in our country. It will take time to solve it.
“It is not good to see a slight contraction this morning, but we believe that the measures we are establishing, giving confidence to the economy, that people return to work, will begin to generate benefits.”
While the immediate pressure on Mrs. Reeves decreased after a surprise jump in growth in the last month of 2024, the latest figures mark another setback.
In his statement on March 26, Mrs. Reeves are expected to present a series of cuts to the benefits and other expenses in an attempt to demonstrate that she is ongoing to comply with her self -imposed fiscal rules.
After the October budget, the Government had £ 9.9 billion space for the rules, but the stagnant growth and inflation costs and loans higher than expected have eliminated the chancellor's maneuver margin.
