UK economy failed to grow in January in blow for Starmer – UK Times

The UK economy recorded zero growth in January in a blow for Sir Keir Starmer’s government, new figures show.

Data released 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 that 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 Labour.

The newest data does not include the impact of the US-Israeli war on Iran, which has sent oil prices soaring and created 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 UK inflation could hit 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 the right one, but I know there is more to do.

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

The ONS director of economic statistics, Liz McKeown, said of the data: “The overall picture remains subdued, with no growth in the latest month”.

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