Economy shrinks in blow for Rachel Reeves

Another day, another piece of bad news for the chancellor. The economy shrank in October for the second month in a row. Figures from the Office for National Statistics (ONS) show a 0.1 per cent drop despite speculation that the economy would return to growth following a fall in September. The ONS said pubs, restaurants and retail were among the sectors to report ‘weak’ months. Responding to the news, Rachel Reeves described the figure as ‘disappointing’ – but insisted the government has put in policies that will ‘deliver long-term economic growth’.

However, this has not stopped the political attacks this morning. Shadow chancellor Mel Stride has described the fall in growth as evidence of the ‘stark impact of the chancellor’s decisions and continually talking down the economy’. Business figures are also pointing the finger, with KPMG’s chief economist Yael Selfin citing to ‘uncertainty ahead of the Budget on 30 October’ as a reason businesses and consumers held back on spending.