UK economy grew 0.1% in August

The UK economy grew slightly in August, according to the latest official figures.

The Office for National Statistics said the economy grew by 0.1% after contracting by 0.1% in July.

The government has made stimulating the economy a key priority and pressure is mounting ahead of next month’s Budget.

Many economists warn that tax rises or spending cuts will be needed to comply with the Chancellor’s self-imposed borrowing rules.

The Institute for Fiscal Studies predicts Rachel Reeves will need to find £22bn to plug the government’s fiscal deficit and will “almost certainly” have to raise taxes.

On Wednesday, Reeves said he was “considering further action on taxes and spending to ensure public finances always recover.”