Martin Daubney has labelled the UK’s unexpected economic contraction a “crushing blow to Britain” as official figures revealed the economy shrank by 0.1 per cent in January.
The downturn has increased fears that the country could be “slipping our way towards recession later this year”, according to the GB News host.
The disappointing figures come at a critical time for Chancellor Rachel Reeves, who is preparing her spring statement for March 26.
The contraction surprised City economists who had expected 0.1 per cent growth in January, following December’s 0.4 per cent expansion.
Martin Daubney has labelled the UK’s unexpected economic contraction a “crushing blow to Britain”
GB NEWS
Martin Daubney said: “Another seemingly crushing blow to Britain.
“The economy unexpectedly shrank by 0.1 per cent in January, increasing fears that we could be slipping our way towards recession later this year.
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“Now the figures come ahead of the Chancellor’s spring statement, which is expected to include government spending cuts.
“We were told the foundations would be fixed.
“We were told at the 14 years of Tory chaos, stability had returned as the adults were back in the room. Except it feels like a bit of a wobble, doesn’t it.”
ONS director of economic statistics Liz McKeown said: “The fall in January was driven by a notable slowdown in manufacturing, with oil and gas extraction and construction also having weak months.”
Despite January’s contraction, the economy grew by 0.2% in the three months to January.
Shadow Chancellor Mel Stride delivered a scathing assessment of Labour’s economic performance.
“It is no surprise that growth is down again, following near no growth in the last three months of 2024,” he said.
Stride accused the government of being a “growth killer” after “consistently talking Britain down, raising taxes to record highs and crushing business with their extreme employment legislation”.
The disappointing figures come at a critical time for Chancellor Rachel Reeves, who is preparing her spring statement for March 26.
PA
“Labour inherited the fastest growing economy in the G7 but since they arrived business confidence has collapsed and jobs are being lost,” he added.
The Trades Union Congress took a different view, with general secretary Paul Nowak stating the figures “show the need for public investment”. Among the expected cuts is £6 billion slashed from the welfare budget, primarily impacting disability and unemployment benefits.
Reeves has previously characterised her difficult decisions as a “once in Parliament event”, suggesting she wouldn’t need to implement further painful measures.
The Chancellor is now in a precarious position with her spring statement just 12 days away.
