Economy Shrinks by 0.1% in Blow to Reeves – Guido Fawkes

Economy Shrinks by 0.1% in Blow to Reeves

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Bad news for Rachel Reeves this morning. UK GDP shrank by 0.1% in January, according to the latest ONS figures. That’s a drop from December’s 0.4% growth and below the expected 0.1% rise. Economists said the fall was led by a slowdown in manufacturing, as well as oil and gas extraction slumping. Meanwhile the Pound slipped 0.1% against the dollar. Shadow Chancellor Mel Stride said:

“It is no surprise that growth is down again, following near no growth in the last three months of 2024. The Chancellor has 12 days until her emergency budget – she must think again or hard-working people will continue to pay the price of a Labour Government without any business experience.”

Reeves’ response is again that “the world has changed” as businesses prepare for her tax raid coming into effect in April. So much for Labour’s promise to “kickstart” the economy…