Chancellor Rachel Reeves has come under further pressure as pre-Budget worries and tax hike speculation was widely blamed for an unexpected contraction in the economy during October.

Official figures showed the UK economy shrank for the second month running in October, contracting by 0.1% following a 0.1% decline in September.

Most economists had been expecting a rise of 0.1% for October on hopes of a manufacturing bounceback led by Jaguar Land Rover’s (JLR) recovery from a major cyber attack.

The Office for National Statistics (ONS) said gross domestic product (GDP) fell as car manufacturing activity only made a “slight” recovery from the woes at JLR, with the services sector weighed down as consumers held back spending on the high street before the Budget, delivered on November 26.

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