The government has made economic growth one of its key priorities.<\/p>\n
A Treasury spokesperson said the government was working to boost economic growth through reducing energy bills and major infrastructure investments. <\/p>\n
“We are determined to defy the forecasts on growth and create good jobs, so everyone is better off, while also helping us invest in better public services,” the spokesperson said.<\/p>\n
Shadow chancellor Sir Mel Stride blamed the Budget for the unexpected contraction, saying it was “a direct result of Labour’s economic mismanagement”.<\/p>\n
“For months, Rachel Reeves has misled the British public. She said she wouldn’t raise taxes on working people – she broke that promise again. She insisted there was a black hole in the public finances – but there wasn’t.”<\/p>\n
Ruth Gregory, deputy chief UK economist at Capital Economics, said the surprise contraction in the economy was “a further reason to expect the Bank of England to cut interest rates next Thursday.”<\/p>\n
“It’s striking that the economy has only grown in one of the past seven months,” she said.<\/p>\n
Over the three months to October, production output shrank by 0.5%, largely driven by a 17.7% fall in vehicle manufacturing.<\/p>\n