Nightmare for Rachel Reeves as UK economy records no growth in January | Politics | News

The UK economy recorded zero growth in January, according to official figures.

The Office for National Statistics (ONS) said Gross Domestic Product (GDP) showed no growth in the first month of 2026, following growth of 0.1% in December 2025 and 0.2% in November 2025.

Reacting to the figures, Chancellor Rachel 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 conditions for growth that will make every part of the country better.”

The Conservative Party has warned that Labour’s “economic mismanagement” is leaving Britain at risk amid the Iran conflict.

Shadow Chancellor Sir Mel Stride said: “This morning the ONS confirmed the economy has been flat with no growth in the last month. This comes after the OBR halved its 2026 growth forecast.

“In its Spring Statement, Labor highlighted its failed policies by claiming to have the ‘correct economic plan.’ Labour’s economic mismanagement has left us vulnerable to the potential impact of events in the Middle East.

“They must now scrap the fuel tax, support North Sea oil and gas and come forward with a viable plan to reduce the budget deficit and lower the aid bill.

“Only the Conservatives have a leader, a clear plan and an experienced team with the backbone to deliver a stronger economy and get Britain working again.”

Labor insisted after winning the last general election that growing the economy was its number one priority.

Shadow Business and Trade Secretary Andrew Griffith added that the economy was “stuttering, just like the prime minister”.

He said: “GDP growth is zero in January and the construction sector is in decline again.

“The economy is stuttering just like the prime minister.

“Things are not going well for a government whose alleged obsession is growth. It’s time for change.”