Shock dip in the economy derails drive for growth as turmoil from Reeves' NI rise and Trump's tariffs looms

CHANCELLOR Rachel Reeves faces further humiliation after latest figures revealed the economy is shrinking.

- By Martyn Brown Political Editor

Experts warned Britain could now tip into recession after GDP fell 0.1% in January, despite Ms Reeves's high-profile push for growth.

It is another crushing blow for the UK economy and lays bare the negative impact of her Autumn Budget.

And it follows her massive National Insurance raid and US President Donald Trump's trade war.

Ms Reeves is already facing a struggle to balance the books and ramp up defence spending amid the Ukraine crisis, with the Spring Statement due on March 26.

The Tories branded the Labour Government a "growth killer" following the gloomy figures.

With tax rises coming into force in April, concerns remain that economic growth will remain sluggish for some time. Businesses have warned that paying more in National Insurance, along with minimum wages rising and business rates relief being reduced, could all affect the economy's ability to grow, with employers expecting to have less cash to give pay rises and create new jobs.

In addition, firms face new uncertainty surrounding tariffs being imposed by President Trump.

Ms Reeves blamed wider global economic turbulence for the lacklustre figures.

She said: "The world has changed and, across the globe, we are feeling the consequences."