Is the United Kingdom in a doom loop of economic decline?

UK GDP growth stands at 0.2% over the three months to January 2026, below expectations, amid an unemployment rate reaching a five-year high of 5.2% and payrolls shedding 134,000 jobs. Productivity remains stagnant, prompting higher tax takes to sustain public spending while energy prices and hiring costs deter business activity. Commentators describe this interplay of weak output, fiscal tightening under the Labour government, and subdued investment as a potential vicious cycle.