GDP monthly estimate, UK: January 2026 + Reactions
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GDP monthly estimate, UK: January 2026 Chancellor responds
to January GDP figures Chancellor of the Exchequer 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.” CBI
Alpesh Paleja,...Request free trial
GDP monthly estimate, UK: January 2026
Chancellor responds to January GDP figures Chancellor of the Exchequer 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.” CBI Alpesh Paleja, Deputy Chief Economist, CBI, said: “While the economy managed to eke out modest growth in the three months to January, underlying momentum remained weak. The broader picture is still one of an economy treading water since the middle of last year. “However, this data is already backward-looking. The near-term outlook is now dominated by heightened uncertainty surrounding conflict in the Middle East. Energy prices have risen sharply and, if sustained, will only intensify the by now familiar mix of high inflation and weak growth. “Oil and gas price shocks risk placing renewed strain on businesses and households, and government will need to respond with agility to the evolving conflict. With firms already squeezed by high industrial energy costs, this moment reinforces the need to cut the cost of doing business – including finding appropriate landing zones for the Employment Rights Act and simplifying the tax system to support growth.” British Chambers of Commerce Reacting to the latest GDP data, published by the Office for National Statistics this morning, Stuart Morrison, Research Manager at the British Chambers of Commerce said: “Today's data shows the UK economy remains stuck in a worrying low growth trap. “A three-month GDP average of just 0.2%, and no growth (0%) in January itself, reinforces the real concerns we're hearing from the businesses we represent. Firms are low on confidence, struggling to invest and holding back on recruitment. “The situation is likely to get worse before it gets better. Recent global uncertainty, including US tariffs and the Middle East conflict, have upended the economic outlook. "We're forecasting GDP growth of just 1% for 2026, with the current turmoil pushing up inflation and making further interest rate cuts unlikely. “The UK cannot afford to drift along with weak growth. Government should use the months ahead to create the conditions for businesses to invest, trade and grow, with a particular focus on how AI technology can transform productivity.” Conservatives Sir Mel Stride MP, Shadow Chancellor on the Exchequer, 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. “Only the Conservatives have a leader with a backbone, a clear plan and the experienced team to deliver a stronger economy and get Britain working again.” ENDS Notes to Editors: Labour claim their plans are working:
However, the Office for Budget Responsibility's Economic and Fiscal Outlook revealed our economy is weaker:
With energy prices rising…
… Labour must:
TUC Commenting on ONS figures showing zero GDP growth in January 2026, and 0.2% growth in the three months leading to January 2026, TUC General Secretary Paul Nowak said: “We always knew that getting our economy back to growth was going to be a bumpy ride - but the government is right to keep investing in infrastructure and stronger public services. “The risk now is that Donald Trump's illegal war in Iran drives uncertainty and unleashes future economic chaos. “Working people are facing a new Trump-made cost of living crisis. “While household energy bills are stable for now, other costs like petrol and mortgage rates are already rising. "The government must do everything it can to shield hard pressed households and firms from Trumpflation. “The Bank of England must recognise the pressures the economy is facing, and stand ready to keep cutting interest-rates in the months ahead. “This will take pressure off families and businesses up and down the country, lower costs and boost spending.” |