Britain is trapped in a cycle of decline and Rishi Sunak’s pledges to boost the economy are now “in tatters”, Labour’s shadow chancellor Rachel Reeves has warned, as the UK fell into recession.
The Office for National Statistics (ONS) revealed on Thursday a 0.3 per cent decline in gross domestic product (GDP) between October and December 2023.
The gloomy official figures mean the economy entered a technical recession, as defined by two or more quarters in a row of falling GDP, for the first time since amid the pandemic in the first half of 2020.
The news deals a blow to the prime minister, who has promised to grow the economy as one of his five priorities, especially after most economists were only forecasting a 0.1 per cent decline in GDP.
In comments Labour suggested were “out of touch”, chancellor Jeremy Hunt said low economic growth is “not a surprise”, but added that the UK must “stick to the plan – cutting taxes on work and business to build a stronger economy” despite tough times for many families.
