Britain’s economy unexpectedly shrank in October before Rachel Reeves’s budget, official figures show, as activity failed to regain momentum after the cyber-attack on Jaguar Land Rover .

Figures from the Office for National Satistics (ONS) showed gross domestic product fell by 0.1%, after a 0.1% drop in output in September. City economists had predicted a 0.1% rise in October.

It comes as the Bank of England mulls cutting interest rates next week amid a slowdown in headline inflation and fears over a sluggish growth outlook and rise in unemployment.

The latest snapshot will probably cement City predictions for a sixth reduction in borrowing costs since the summer of last year, after the chancellor’s budget included a number of inflation-cutting measures alongside sweeping tax rise

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