LONDON, June 12: Britain's economy shrank more than expected in April, official data showed Thursday, in the first month of the Labour government's business tax hike and US President Donald Trump's reciprocal tariffs onslaught.
Gross domestic product contracted 0.3 percent in the month, compared to 0.2 percent growth in March, the Office for National Statistics said in a statement.
That falls below the 0.1 percent contraction expected by economists.
The government on Wednesday laid out its priorities for the coming years, injecting the ailing National Health Service with billions of pounds and pumping funds into defence and housing, while making cuts to other departments.
Finance minister Rachel Reeves has hoped that spending and investment will help spur Britain's sluggish economy, which is under added pressure from Trump's tariffs.
Reeves said Thursday's figures were "clearly disappointing," but insisted that her spending plans would deliver growth for Britain.
While Britain's first-quarter growth beat expectations to rise by 0.7 percent, analysts warned that it was unlikely to be sustained in April.
The latest data covers the period of the introduction of an unpopular hike to a business tax laid out in the Labour government's maiden budget in October. "AFP
