UK Economy Contracts Amid Political Debate Over Budget and NHS Strikes
ONS data released in December 2025 show that the UK's GDP fell by 0.1% in October. This contraction occurred before Chancellor Rachel Reeves's budget and continues a pattern of weaker economic growth. The decline was partly attributed to weakness in the car manufacturing sector, following a cyber-attack on Jaguar Land Rover.
Conservative shadow chancellor Mel Stride blamed the economic contraction on what he described as Labour's mismanagement. Stride accused Reeves of lacking an economic plan, depicting the budget as prioritizing welfare benefits over work incentives.
Economists noted that the economic slowdown and fading inflationary pressures might prompt the Bank of England to consider cutting interest rates in the near future.
Amid these economic concerns, NHS pressures remain significant with flu season impacting service demands. Labour's Wes Streeting warned he could not guarantee patient safety if ongoing strikes by resident doctors proceed and potentially extend their strike mandates. Discussions included emergency legislation to prioritize UK graduates for medical training placements.
The day's political agenda featured a 9 am phone-in with Wes Streeting on LBC, the assisted dying bill at committee stage at 10 am, a Downing Street lobby briefing at 11:30 am, and a meeting between Labour leader Keir Starmer and Belgian Prime Minister Bart De Wever in the afternoon.
