Responding to the ONS’ first GDP estimate for the fourth quarter of 2023, Alex Veitch, Director of Policy and Insight at the British Chambers of Commerce, said:

“A contraction in GDP for the final quarter of 2023 means the UK economy is in technical recession. Businesses were already under no illusion about the difficulties they face, and this news will no doubt ring alarm bells for Government.

“The BCC’s last Quarterly Economic Forecast suggests annual growth below 1.0% for the next two years as firms remained gripped by uncertainty and the twin perils of high inflation and interest rates remain.

“The Chancellor must use his Budget in just under three weeks’ time to set out a clear pathway for firms and the economy to grow.

“Businesses are crying out for a long-term economic plan that reduces the cost pressures they are facing and unlocks the investment they so sorely need.”