Rachel Reeves has been dealt a major blow after it was revealed Britain’s economy shrank in January.

The grim data was unveiled this morning by the Office for National Statistics.

They said the fall in gross domestic product (GDP) was mainly down to a contraction in the production sector.

The figures come despite Labour insisting that boosting economic growth is its “number one mission”.

They will also pile more pressure on the chancellor ahead of her spring statement later this month.

Shadow chancellor Mel Stride said: “It is no surprise that growth is down again, following near no growth in the last three months of 2024.

“After consistently talking Britain down, raising taxes to record highs and crushing business with their extreme employment legislation this government is a growth killer.

“Labour inherited the fastest growing economy in the G7 but since they arrived business confidence has collapsed and jobs are being lost.

“The chancellor has 12 days until her emergency Budget – she must think again or hardworking people will continue to pay the price of a Labour government without any business experience.”

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