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The UK economy shrunk again in October, according to official figures, highlighting the scale of the challenge facing Rachel Reeves in her mission to get the economy going again.
The Office for National Statistics (ONS) said output fell by 0.1 per cent following the 0.1 per cent decline recorded for the previous month.
The decline is an unexpected blow for Ms Reeves, as most economists had been expecting GDP to rise by 0.1 per cent during the month.
The latest figures cover the month ahead of the government’s first budget, which saw Labour unveil £40bn worth of tax rises.
Labour has put economic growth at the centre of its plan for the economy, but there are concerns the scale of the tax rises could put a dampener on the plans.
Liz McKeown, the ONS’s director of economic statistics, said: “The economy contracted slightly in October, with services showing no growth overall and production and construction both falling.
“Oil and gas extraction, pubs and restaurants and retail all had weak months, partially offset by growth in telecoms, logistics, and legal firms.
“However, the economy still grew a little over the last three months as a whole.”
More to follow…
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