Reeves suffers yet another setback as the UK economy contracts, according to new data.

According to official data, the UK economy contracted once more in October, underscoring the magnitude of the task Rachel Reeves has in ensuring the UK has the strongest growth in the G7.According to the Office for National Statistics (ONS), output decreased by 0.1% in October after declining by 0.1% the month before. This is the first time the economy has shrunk for two months in a row since March and April 2020, when the Covid-19 pandemic first started.

After achieving the strongest growth in the G7 at the beginning of 2024, the economy came to a complete standstill in the second half of this year.The most recent data covers the month before the government's first budget, in which Labour announced tax increases of £40 billion. According to the ONS's monthly business survey, certain businesses, including manufacturers, merchants, and recruiters, reported that turnover was impacted while they awaited the tax-setting statement's decision.