The Office for National Statistics indicated that adverse weather conditions have also negatively impacted the manufacturing and construction sectors, despite a slight growth in the services sector.

Despite these challenges, the UK government has reiterated that boosting economic growth is its top priority.

The Labour government, under Prime Minister Keir Starmer, is grappling with the challenge of stimulating economic growth, which has remained sluggish since the financial crisis of 2008-09.

Since its election in July 2024, the Labour government has faced ongoing difficulties in achieving meaningful economic growth.

Looking ahead, the National Institute of Economic and Social Research projects a modest growth of 0.4% for the first quarter of 2025, contrasting with the Bank of England's more conservative estimate of only 0.1%.

Experts warn that the UK economy may be entering a prolonged recession, which could have long-term impacts on industrial competitiveness.

In response to the poor economic performance, Reeves has promised to accelerate growth initiatives, including supporting a third runway at Heathrow Airport and developing a technology hub between Oxford and Cambridge.

The UK economy unexpectedly contracted by 0.1% in January 2025, marking a setback for Labour's growth agenda following a previous decline of 0.4% in December 2024.

This contraction has been attributed to significant decreases in the manufacturing sector, which fell by 1.1%, and a 3.7% drop in North Sea oil and gas production.

Chancellor Rachel Reeves has defended recent tax increases as necessary measures to enhance public service investments amid these economic challenges.

However, concerns have been raised about the potential negative effects of the Treasury's fiscal plans, which include increased tax burdens on businesses, potentially stifling investment and job creation.

Critics argue that Reeves' cautious approach and tax increases have contributed to the economic slowdown, affecting business confidence and job creation.