New data released today by the Office for National Statistics shows that the UK economy shrank by 0.1% in January.
The news has increased calls for the UK to deepen regulatory alignment on goods and services with the European Uniion.
Landmark new research, commissioned by Best for Britain and undertaken by Frontier Economics, modelled the impact of greater UK-EU regulatory alignment. The independent study found that deeper alignment with the EU on both goods and services could boost UK GDP by 1.7% to 2.2%, while alignment on goods alone could still deliver growth of 1% to 1.5%.
It also found that a common sense deal can shield both the EU and UK from new US tariffs.
Naomi Smith Chief Executive of Best for Britain said,
"Continued stagnation is a bad omen for our economy which is yet to feel the impact of current US tariffs, let alone others Trump has up his sleeve.
“The Government must pull every lever to deliver growth and nothing will shift the economic dial or protect us from US tariffs more, than alignment with the EU on goods and services, delivering a boost of up to 2.2% across the country according to independent analysis”