UK economy failed to grow in January in blow for Starmer

New figures show the UK economy recorded zero growth in January in a blow to Sir Keir Starmer’s government.

Data published by the Office for National Statistics (ONS) on Friday reveals that Gross Domestic Product (GDP) did not rise or fall in January.

Figures released last month show the UK economy grew by just 0.1 per cent in the final three months of 2025 as Chancellor Rachel Reeves continues to struggle to stimulate growth, a key manifesto pledge for Labor.

The latest data does not include the impact on Iran of the US-Israeli war, which has sent oil prices soaring and raised fears of a new cost-of-living crisis in the UK if bills rise.

Earlier this week the Office for Budget Responsibility (OBR) warned that inflation in the UK could reach three per cent by the end of the year if oil and gas prices remain at current levels.

Ms Reeves said: “Our economic plan is correct but I know there is more to be done.

“In an uncertain world, we are building a stronger, more secure economy by lowering the cost of living, cutting the national debt, and creating the growth conditions for every part of the country to do better.”

ONS director of economic statistics Liz McKeown said of the data: “With no growth in the last month, the overall picture remains weak.”

Appearing before Parliament’s Treasury Committee on Wednesday, Ms Reeves said it would be “unwise to speculate” about the impact of the Iran war on Britain’s inflation, growth or interest rates. But he confirmed the Treasury was “looking at a range of scenarios”.

The conflict has restricted shipping in the Strait of Hormuz, a vital route for oil and gas supplies.

This is a breaking story, more to come…