BRITAIN’S economy unexpectedly shrank in January, official data revealed today in a fresh blow to Chancellor Rachel Reeves ahead of her Spring Statement.

The Office for National Statistics (ONS) reported a 0.1 per cent in GDP in the first month of the year, the latest available data, which it said was driven by a sharp decline in manufacturing.

Economists had predicted slight growth and the drop follows a 0.4 per cent increase in December.