BRITAIN’S economy flatlined in January as people cut back on eating out, official figures showed today.

The Office for National Statistics (ONS) showed zero growth in gross domestic product (GDP) against expectations for output to increase by 0.2 per cent.

There was a 2.7 per cent fall in food and drink service activities, while production fell by 0.1 per cent.

In the three months to January, GDP is estimated to have grown by just 0.2 per cent, the ONS said.

The worse-than-forecast figures have raised concerns from economists that a prolonged war by the US and Israel could send Britain’s economy into reverse.

The latest data follows meagre growth of just 0.1 per cent in the final three months of last year amid budget uncertainty, and a subdued performance in December with growth of 0.1 per cent.

Chancellor Rachel Reeves said the figures come amid an “uncertain world,” saying: “Our economic plan is the right one, but I know there is more to do.

“We are building a stronger and more secure economy by cutting the cost of living, cutting national debt and creating the conditions for growth to make all parts of the country better off.”

TUC general secretary Paul Nowak said the government “is right to keep investing in infrastructure and stronger public services,” adding: “We always knew that getting our economy back to growth was going to be a bumpy ride.

“The risk now is that [US President] Donald Trump’s illegal war in Iran drives uncertainty and unleashes future economic chaos.

“Working people are facing a new Trump-made cost-of-living crisis.  

“While household energy bills are stable for now, other costs like petrol and mortgage rates are already rising.”

Mr Nowak said that the government “must do everything it can to shield hard pressed households and firms from Trumpflation.”

“The Bank of England must recognise the pressures the economy is facing, and stand ready to keep cutting interest rates in the months ahead,” he added.

“This will take pressure off families and businesses up and down the country, lower costs and boost spending.”

Experts said that Bank of England policymakers are likely to hold off cutting interest rates next Thursday despite the moderate economic performance in recent months.