Recession fears mount as figures present economic system within the pink even BEFORE Chancellor’s tax-bomb Budget

Recession fears were fuelled today as official figures showed the economy slipping into the red even before Rachel Reeves‘ tax-bomb Budget.

GDP was down 0.1 per cent in October, defying hopes of a bounceback following a 0.1 per cent decline in September and flatlining in August.

The grim picture underlines concerns that the Chancellor’s latest huge raid on November 26 happened when activity that was already grinding to a halt. 

ONS Director of Economic Statistics Liz McKeown said: ‘The economy contracted slightly in the latest three months, as production fell again and services growth stalled.

GDP was down 0.1 per cent in October, defying hopes of a bounceback following a 0.1 per cent decline in September and flatlining in August

The grim picture underlines concerns that the Chancellor’s (pictured) latest huge raid on November 26 happened when activity that was already grinding to a halt

‘Within production, there was continued weakness in car manufacturing, with the industry only making a slight recovery in October from the substantial fall in output seen in the previous month.

‘Overall services showed no growth in the latest three months, continuing the recent trend of slowing in this sector. There were falls in wholesale and scientific research, offset by growth in rental and leasing and retail.’

A Treasury spokesman said: ‘We are determined to defy the forecasts on growth and create good jobs, so everyone is better off, while also helping us invest in better public services.

‘That is why the Chancellor is taking £150 off energy bills, protecting record investment in our infrastructure, and we are backing major planning reforms, the expansion of Heathrow and Gatwick airports, and the construction of Sizewell C.’