Official figures showing the economy shrank in October have upped the chance of a Bank of England rate reduction when it next meets

A Bank of England rate cut next week is a “slam dunk” after the UK economy went into reverse for the second month running, say some experts.

Households and businesses worrying about what tax hikes might be announced by Chancellor Rachel Reeves in the Budget dented spending and overall output. The scale of the hit was revealed as the Office for National Statistics confirmed the economy shrank by 0.1% in October, when it had been expected to grow by that amount. It followed a 0.1% contraction in September too. The UK economy has now not grown since June, with gross domestic product either flat or falling in the past four months.

Economists were already pr

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