According to the Office of National Statistics (ONS), the development mission of Rachel Reeves and Sir Kir Stmper was signed a 0.1 percent contract in Britain’s economy in January in a setback.
A few weeks before the Chancellor to set up his spring statement to set up government spending schemes, ONS said the economy started the year.
The decline in GDP (GDP) was a shock, in which most economists expected it to increase by 0.1 percent in the first month of the year. Responding to the decline, conservative branded labor “development killers”
However, from three months to January, GDP was estimated to increase by 0.2 percent, which was inspired by an increase in the service sector.
ONS Director of Economic Statistics, Liz McCain said that the figures continued to show “weak growth” under labor.
He said: “The decline in January was inspired by a remarkable recession in manufacturing, with oil and gas extraction and construction also weak months.
“However, services continued to increase in January, leading a strong month for retail, especially food reserves, as people eat more at home and drank.”
Ms. Reeves said that the Britain has “changed the results” as “the world has changed”, transferred the defect for the recession for international factors rather than her own budget measures.
And he said: “That’s why we are going ahead and faster to protect our country, kickstarts economic growth to improve our public services and change our plan.
“And why we are starting the greatest continuous growth in defense spending since the Cold War, basically shaping the British state to distribute to working people and their families; And to take Britain to the blockers to re -build a building. ,
But the conservatives branding the Labor Government “Growth Killer” after the recession, pointing to policies such as the national insurance growth of Labor, which is effective in April.
Shadow Chancellor Mail Strued said: “It is no surprise that after there is no increase in the last three months of 2024, development is again below.
“After continuously talking about Britain, this government is a development killer, after extending taxes to crush business with high records and crushing business with its extreme employment law.
“Labor inherited the fastest growing economy in G7, but has lost jobs ever since they reached the confidence of business.
“Chancellor has 12 days till his emergency budget – he should think again or hard work people will continue to pay the price of a labor government without any commercial experience.”
And Liberal Democrats said that Labor’s wretched budget has left our economy to life support “.
Deputy Leader Daisy Cooper said: “The spring statement should be given a very important shot in hand.
“The Chancellor must accept that his budget has failed to reversed the years of conservative economic barbarism and extended a new plan that leads the growth capacity of small businesses to the top and bottom to bottom.”
Labor has increased its major priority to the economy since winning the election last year, but the pace has been slow between consumer trust and rising inflation.
And the UK economist Paul Delles, head of Capital Economics, warned: “From April the possibility of high taxes abandoned the feeling of trade on the floor and the global background deteriorates, the economy is unlikely to be very strong from here”.
A minister said that fixing the economy would take “long time” after the January shock.
Care Minister Karin Smith told Sky News: “Vikas is in the heart of what we need to do to fix the economy, and we know that it is going to take a long time.
“We know that the things we are implementing, some changes to plan the law, some things that we are talking in NHS, bring people back to work, help in all those things.
“But we have this low-development, stable economy for the last decade. This has created a lot of problems in our country. It is going to take time to fix it.
“It is not good to see a very minor contraction this morning, but we think the measures we are taking confidence to the economy, bringing people back to work, will start getting profit.”
While the immediate pressure on MS Reves decreased after a stunning jump in the last month of 2024, the latest figures mark another shock.
In her statement on 26 March, Ms. Reeves is expected to unveil a range of benefits and other expenses to show this to fulfill their self-flooded fiscal rules.
After the October budget, the government had a £ 9.9bn headroom against the rules, but has wiped out the Chancellor’s Vigley Room over the steady growth and the expected inflation and borrowing costs.
