UK economy shrank unexpectedly by 0.1% in October

The UK's economy shrank unexpectedly in the lead up to the Budget, according to the latest official figures.

The economy contracted by 0.1% in October, the Office for National Statistics (ONS) said, whereas economists had been expecting it to grow by 0.1%. The economy also shrank by 0.1% in the three months to October.

The cyber-attack at Jaguar Land Rover continued to affect car production, with only a slight recovery in October from the previous month's fall, while analysts said uncertainty ahead of the Budget had slowed consumer and business spending.

The weaker-than-expected figures strengthen the case for the Bank of England to cut interest rates at its meeting next week, analysts said.

The government has made economic growth one of its key priorities.