14 Mar 2025
Data published by the Office for National Statistics (ONS) has revealed that the UK economy unexpectedly shrank in January 2025.
The figures show that the economy shrank by 0.1% in January, partially due to a slowdown in manufacturing.
Construction and oil and gas extraction also had a weak month, with experts warning that the overall picture is one of weak growth.
The ONS data comes ahead of Chancellor Rachel Reeves' Spring Statement, which many expect will be used to outline government spending cuts.
Commenting on the latest figures, Stuart Morrison, Research Manager at the British Chambers of Commerce (BCC), said: 'Our latest forecast predicts a tough year ahead, with the economy growing just 0.9% in 2025, driven largely by increased government spending. The national insurance hike is looming large for businesses and will hit investment, recruitment and prices in the coming months.
'To unlock growth, the government should publish a tax roadmap on national insurance and business rates. This would enable firms to know when cost pressures will ease, allowing them to plan their investment decisions.'