The Office for National Statistics (ONS) has reported that gross domestic product (GDP), a measure of how the economy is doing, showed zero growth in January, following growth of 0.1% in December 2025.
The ONS said that there was no growth in the services sector in January. It noted that food and drink service activities fell by 2.7%. January is often a tough month for hospitality businesses.
The production sector fell by 0.1%, while the construction sector grew by 0.2%.
Interestingly, GDP has grown by 0.2% over the three months to January. Looking at GDP on a three-monthly basis can be a less volatile measure to compare against than the monthly figures.
The Prime Minister Keir Starmer has already warned that the longer the Middle East conflict continues, the more likely the UK economy will be affected. Increases in oil prices are already being felt and added pressure on inflation is likely to delay interest rate cuts that were otherwise expected.
“Owners of dodgy shops that are evading tax: we are coming for you,” said Dan Tomlinson, Exchequer Secretary to the Treasury, as he announced that HMRC will make 30,000 high-street ‘interventions’ in the coming year as part of an initiative to tackle tax fraud and illegal activity.
The announcement of mandatory payrolling for Benefits In Kind was originally expected to start in April 2027, but following industry pressure, it will now be introduced in two phases.
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