Britain's economy shrank by 0.1% in October, underlining the scale of Labour's challenge to get the economy growing.
Economists, polled by Reuters, had expected the economy to grow by 0.1%. It follows a decline of 0.1% in September and sluggish growth of 0.1% in the third quarter of the year, according to figures last month.
Keir Starmer said last week it was the government's "aim" to make the UK the fastest-growing G7 economy, while pledging to deliver higher real household disposable income by 2029.
However, a range of companies have said they plan to slow spending and hiring after Labour's budget in October, which included £40bn of tax rises.
Economists said the second successive monthly contraction in GDP meant the economy had grown for only one of the five months to October, and might mean the economy shrank for the fourth quarter as a whole.
The chancellor, Rachel Reeves, said the figures were "disappointing" but insisted Labour was putting the economy back on track for growth.
This story is from the December 14, 2024 edition of The Guardian.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the December 14, 2024 edition of The Guardian.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
Transport police facing cuts amid record assaults
Dozens of British Transport Police stations across the country face possible closure, leaving fewer officers protecting the railway at a time when assaults on passengers have reached record levels.
Starmer calls on world leaders to redouble work to support Ukraine
Keir Starmer has urged world leaders to \"double down\" in their efforts to support Ukraine on a visit to Poland, days before Donald Trump's return to the US presidency risks jeopardising international solidarity on the issue.
Schoolboy's killer who 'boasted of crime' in rap lyrics is recalled to jail
A rapper who served 14 years in jail for the murder of a London schoolboy has been recalled to prison for breaching his licence conditions after media reports exposing the lyrics to his music.
Concrete evidence: will The Brutalist open eyes to the beauty of modernist buildings?
Zigzags and ziggurats: Four of Britain's brutalist gems
Strangers' bar shut for security check after drink allegedly spiked
Parliament's Strangers' bar will be closed next week while security arrangements are reviewed after an alleged spiking incident.
Gym-goers told not to use bank pin numbers for their lockers
Gym users were urged yesterday to change their locker codes after a thief stole hundreds of pounds from a man who used the same number for his bank card.
Sands of time UK's oldest municipal hut faces its final summer
Admittedly, it does look a little shabby. A wooden slat next to the front door and a window pane are missing and a lick of paint would definitely not go amiss. But in Bournemouth there is disquiet at the prospect of the structure - beach hut number 2359 - being razed when structural work on the nearby pier begins.
West End Theatre lights to be dimmed for a legend
The Society of London Theatre has said playhouses across London's West End will dim their lights for two minutes at 7pm on Tuesday, following the death of Joan Plowright.
Newly found Ella Fitzgerald recording to be released
Lost recordings of an Ella Fitzgerald concert in 1967, including her spin on pop songs such as Alfie and Music to Watch Girls By, have been rediscovered and prepared for release.
Drones likely to take lead role in future Royal Navy
The Royal Navy of the future will be dominated by robots, drones and uncrewed vessels, leading chiefs to conclude there is no need to try to recruit extra sailors as part of the forthcoming defence review.
