UK economy shrinks unexpectedly in blow to Rachel Reeves
GuardianMAR 12
UK: Economy Shrinks 0.1% in January
Above: Chancellor of the Exchequer Rachel Reeves during a visit to Babcock in Rosyth, March 14, 2025. Image copyright: Mike Boyd/PA Images via Getty Images
The Spin
Left narrative
While the latest statistics are a blow, chasing headline GDP figures will not solve the UK's economic challenges unless stagnant wages and rising inequality are resolved. It’s time for an economy that works for everyone, not just the wealthy. By raising wages and investing in public services, Labour can build a fairer, more equal society that will in turn promote bottom-up investment and revitalize the UK economy.
Right narrative
The latest GDP decline reveals the failure of Rachel Reeves's economic strategy. Her push for growth has backfired, with production plunging and the UK teetering on the edge of recession. Instead of spurring growth, her high taxes and anti-business policies are stifling confidence and job generation. The economy was growing before Labour and it is now shrinking under its leadership — Reeves is entirely at fault and must be sacked.