Technical recession leaves a cloud hanging over Rishi Sunak’s economic plan

But the GDP figures revealed a very different picture. In fact, his Chancellor has had to acknowledge that the economy hasn’t reached a turning point yet, as the country entered a technical recession.

Asked why he was talking about a turning point when growth was heading in the wrong direction, the Chancellor told the BBC: “The turning point will come when inflation falls to its target level of 2 per cent and the Bank of England feels it can bring down interest rates.”

The figures are an obvious blow to Sunak. The Government finds itself having to pivot from saying ‘the plan is working’ to ‘we must stick to the plan’.

Britain has long suffered from anaemic growth but now the PM has to suffer the ignominy of overseeing a recession.

GDP fell by 0.3 per cent in the last three months of 2023, following a decline of 0.1 per cent in the previous three months, with two or more quarters in a row of falling GDP signalling a technical.

It may be a comparatively small recession but it hardly inspires confidence in the PM’s plan for growth.

The reality is Britain is letting opportunities slip owing to turmoil in Westminster. Three Prime Ministers in the space of 18 months. Plans to drive investment, create jobs and increase opportunities made and abandoned.

All the while the net zero investment train leaves the station.

The Tories will be waking up to a bellwether test this morning. The results of the byelections in Wellingborough and Kingswood will outline the scale of the challenge faced by all parties in Westminster.