Sky News stopped for breaking update in huge blow to Rachel Reeves and Keir Starmer

Sky News presenter Anna Jones highlighted the latest GDP data from the Office for National Statistics, revealing that the UK economy shrank by 0.01% in January.

Describing the figures as “a worry” for Chancellor Rachel Reeves, Jones noted that many of the government’s plans rely on strong economic growth. She turned to business and economics correspondent Paul Kelso for further analysis.

Kelso explained that the data showed the economy contracted in January, with growth falling by 0.01%. While the drop is small, it is on the “wrong side of zero,” which is concerning.

Economists had expected growth of 0.1%, so the negative figure, though marginal, is a disappointment.

This follows a slight uptick in December, when the economy grew by 0.4%, but the overall trend remains weak, with the last two quarters of 2024 showing flat growth.

Kelso emphasized that this is the last thing the Chancellor would want to see, as it complicates efforts to boost the economy and deliver on government promises.

The news is also troubling for British businesses and the employees who depend on them, as sluggish growth can lead to job insecurity and reduced investment.

The figures underscore the challenges facing the UK economy as it struggles to recover momentum amid ongoing uncertainties.