Britain’s economy recorded zero growth in January, according to official figures.
The Office for National Statistics (ONS) said there was no growth in gross domestic product (GDP) in the first month of 2026.
It comes after GDP was just 0.1% higher in the final three months of last year, while there are fears the UK will be hit by the Middle East conflict.
Reacting to the figures, Chancellor Rachel 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 Tories warned that Labour’s « economic mismanagement » has left the UK at risk amid the Iran conflict.
Shadow Chancellor Sir Mel Stride said: « This morning, the ONS confirmed the economy is flatlining – with no growth in the latest month. This follows the OBR halving the growth forecast for 2026.
« At the Spring Statement, Labour claimed they had the ‘right economic plan’, doubling down on their failed policies. Labour’s economic mismanagement has left us vulnerable to the potential impacts of events in the Middle East.
« They must now axe the fuel tax, back North Sea oil and gas and come forward with a proper plan to cut the deficit and get the benefits bill down. »
Tory leader Kemi Badenoch added: « Britain’s economy is flatlining, battered by Labour’s taxes and regulations.
« Keir Starmer isn’t thinking about economic growth, he’s too distracted by the Mandelson scandal and clinging on to his own job. We need to cut spending, cut taxes and get Britain working again. »
Liz McKeown, ONS director of economic statistics, said the « overall picture remains subdued » in the UK economy.
Most economists had expected growth of 0.2% in January.
Labour had insisted growing the economy was its number one priority after winning the last general election.
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