Close Menu
WTX News
    Facebook X (Twitter) Instagram
    Trending
    • FC Twente 1-1 Chelsea Game Analysis
    • Why Ben Sulayem looks set to win FIA president re-election unopposed
    • Louis Tomlinson reveals exact moment Niall Horan told him Liam Payne had died
    • Trump says Illinois governor and Chicago mayor should be jailed as National Guard deployed
    • Stephen Lawrence’s mother brands one of his killers ‘a coward and a liar’
    Facebook X (Twitter) Instagram YouTube
    WTX News
    • Live News
      • US News
      • EU News
      • UK News
      • Politics
      • COVID-19
      • Business
      • Tech zone
    • World news
      • Middle East News
        • UAE News
        • Palestine News
      • Europe
        • Italian News
        • Spanish News
      • Africa news
      • South America
      • North America
      • Asia
    • News Briefings
      • UK News Briefing
      • World News Briefing
      • Live Business News
    • Sports
      • Football News
      • Tennis
      • Women’s Football
    • MY World
      • Climate Change
      • In Review
      • Expose
      • Special Reports
        • Conscience Convoy
        • Rohingya Report
    • Entertainment
      • Insta Talk
      • Royal Family
      • Gaming News
      • TV Shows
      • Streaming
    • Lifestyle
      • Fitness
      • Fashion
      • Cooking recipes
      • Luxury
      • Money Saving Expert
    • Travel
      • Culture
      • Holidays
    • Sign Up
      • Log In
    WTX News
    • Live News
    • World news
    • News Briefings
    • Sports
    • MY World
    • Entertainment
    • Lifestyle
    • Travel
    • Sign Up
    Home - Politics - Economy finds reverse gear in January with surprise contraction
    Politics

    Economy finds reverse gear in January with surprise contraction

    By Olga Winter - EU Newsdesk3 Mins Read
    Facebook Twitter LinkedIn Email Telegram WhatsApp
    Economy finds reverse gear in January with surprise contraction

    Cliff Notes – Economy finds reverse gear in January

    • The Economy finds reverse gear in January it contracted by 0.1% in January 2025, contrary to expectations of a modest growth of 0.1%, primarily due to a decline in manufacturing output.
    • Chancellor Rachel Reeves is facing significant challenges, including impending tax hikes and a £40bn bill from increased employer national insurance contributions, which threaten job security and economic stability.
    • The Office for Budget Responsibility is expected to downgrade growth forecasts, as global economic uncertainties, including a trade war initiated by Donald Trump, loom large over the UK’s economic outlook.

    Economy finds reverse gear in January with surprise contraction

    Economy finds reverse gear in January with surprise contraction
    The UK economy shrank at the start of 2025

    The UK economy shrank at the start of 2025, according to official figures which had been expected to show further meagre growth.The Office for National Statistics (ONS) said that output declined by 0.1% during the month following the 0.4% growth seen in December.

    A growth figure of 0.1% had been tipped by a majority of economists. The ONS said a slump in manufacturing output was to blame.

    Biggest cuts in fixed rate mortgage deals in almost six months

    It marks a fresh blow for the chancellor as the economy faces headwinds on many fronts at a time when her priority is securing economic growth. Looming large for Rachel Reeves is the threat of an adverse business reaction to budget tax hikes she is due to impose from April.

    Firms are facing the bulk of the £40bn bill through employer national insurance contributions and warning of job losses, weaker pay rises and investment and possible price hikes to account for the surge in costs. Other challenges include the escalating trade war initiated by Donald Trump, which is tipped by economists to dent growth prospects globally.

    NHS England will be abolished
    NHS England will be abolished

    Ms Reeves is low on ammunition as she prepares a spring statement for MPs later this month, with the welfare bill set to be slashed to avoid breaking her own spending rules. At the same time, the independent Office for Budget Responsibility is widely expected to downgrade its forecasts for UK growth ahead.

    The world has changed and across the globe

    The chancellor said of the ONS data: “The world has changed and across the globe we are feeling the consequences.”That’s why we are going further and faster to protect our country, reform our public services and kickstart economic growth to deliver on our Plan for Change.

    “And why we are launching the biggest sustained increase in defence spending since the Cold War, fundamentally reshaping the British state to deliver for working people and their families; and taking on the blockers to get Britain building again.”

    Conservative Shadow Chancellor, Mel Stride, responded: “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.”

    News Just in

    FC Twente 1-1 Chelsea Game Analysis

    WTX Sports Team

    Cliff Notes – FC Twente 1-1 Chelsea Game Analysis Chelsea dominated possession and created numerous chances but were unable to secure a win, settling for

    Read More »

    Why Ben Sulayem looks set to win FIA president re-election unopposed

    WTX Sports Team

    Mohammed Ben Sulayem Poised for Unopposed Re-Election as FIA President The incumbent president of the FIA, Mohammed Ben Sulayem, looks set to secure a second

    Read More »

    featured Office for National Statistics Office of Budget Responsibility Rachel Reeves UK featured
    Share. Facebook Twitter Pinterest LinkedIn Tumblr Email Telegram WhatsApp
    Previous ArticleTop Democrat backs Republican bill to avoid government shutdown 
    Next Article PM scraps NHS England in £800m gamble – Paper Talk UK
    Olga Winter - EU Newsdesk
    • Facebook
    • X (Twitter)

    Olga Winter is a specialist editor writing about current affairs on the EU news desk for WTX News. Based in Brussels she ideally suited to the address the domestic and global affairs of the European continent, with assignments that include expose and In Review features for specialist reports..

    Related Posts

    Gaza war latest: Israel intercepts latest Gaza flotilla; peace talks continue in Egypt
    London

    Gaza war latest: Israel intercepts latest Gaza flotilla; peace talks continue in Egypt

    Starmer refuses to rule out tax rises as he flies business leaders to India
    London

    Starmer refuses to rule out tax rises as he flies business leaders to India

    Prosecutors to appeal against decision to throw out terrorism case against Kneecap rapper
    London

    Prosecutors to appeal against decision to throw out terrorism case against Kneecap rapper

    Jaguar Land Rover reveals supplier aid and partial production restart after cyber attack
    UK News

    Jaguar Land Rover reveals supplier aid and partial production restart after cyber attack

    Leave A Reply Cancel Reply

    You must be logged in to post a comment.

    Advertisment
    News Headlines
    Trump says Illinois governor and Chicago mayor should be jailed as National Guard deployed

    Trump says Illinois governor and Chicago mayor should be jailed as National Guard deployed

    Stephen Lawrence’s mother brands one of his killers ‘a coward and a liar’

    Stephen Lawrence’s mother brands one of his killers ‘a coward and a liar’

    Save 70% on VIP subscription
    News Briefings - the way to a better life
    News Briefings - the way to a better life
    Advert by Sponsors
    More from WTX News
    The latest gaming news - with game reviews and tips and tricks. updated 24 hours a day.
    The latest gaming news
    Hot off the press!
    • FC Twente 1-1 Chelsea Game Analysis October 8, 2025
    • Why Ben Sulayem looks set to win FIA president re-election unopposed October 8, 2025
    • Louis Tomlinson reveals exact moment Niall Horan told him Liam Payne had died October 8, 2025
    • Trump says Illinois governor and Chicago mayor should be jailed as National Guard deployed October 8, 2025
    • Stephen Lawrence’s mother brands one of his killers ‘a coward and a liar’ October 8, 2025
    WTX News latest breaking news sports and travel
    Latest News and analysis - Deciphering through the BS with exclusive News Briefings
    Facebook X (Twitter) TikTok Instagram

    News

    • World News
    • UK News
    • US News
    • EU News
    • Business
    • Opinions
    • News Briefing
    • Live News

    Company

    • About WTX News
    • Register
    • Advertising
    • Work with us
    • Contact
    • Community
    • GDPR Policy
    • Privacy

    Services

    • Fitness for free
    • Insta Talk
    • How to guides
    • Climate Change
    • In Review
    • Expose
    • NEWS SUMMARY
    • Money Saving Expert

    News delivered to your inbox

    Copyright WTX News 2025

    • Privacy Policy
    • Terms

    Type above and press Enter to search. Press Esc to cancel.