UK economy plunges into technical recession

The promise made by British Prime Minister Rishi Sunak to revitalize the economy has been broken, since the country has entered a technical recession.

Shadow chancellor Rachel Reeves warned that the UK has entered a recession and that the economy is ”in tatters” after the Office for National Statistics (ONS) published on Thursday a 0.3% drop in GDP between October and December 2023.

The adverse official data show that the economy has entered a technical recession, defined as two or more quarters of decreasing GDP, for the first time since the pandemic in the first half of 2020.

This is a blow for the prime minister, who has promised to boost the economy as one of his five goals. Most experts were only anticipating a 0.1% fall 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.

The shadow chancellor Rachel Reeves has responded to the latest figures showing that the UK economy has entered a technical recession: She said “Rishi Sunak’s promise to grow the economy is now in tatters.

“The prime minister can no longer credibly claim that his plan is working or that he has turned the corner on more than fourteen years of economic decline under the Conservatives that has left Britain worse off. This is Rishi Sunak’s recession and the news will be deeply worrying for families and businesses across Britain.”

She added: “It is time for a change. We need an election now to give the British people the chance to vote for a changed Labour Party that has a long-term plan for more jobs, more investment and cheaper bills. Only Labour has a plan to get Britain’s future back.”

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