UK economy shrinks amid fears of longest recession since records began

Chancellor Jeremy Hunt says ‘tough rough ahead’ as he prepares to slash public spending

The UK economy shrank in the latest quarter, official figures show – marking the first step in a long recession expected in the year ahead.

A country will not officially be in recession until the economy contracts for two quarters in a row, but the Bank of England forecasts Britain to be in one by the end of the year.

Gross Domestic Product (GDP) shrank by 0.2 per cent between July and September, compared to growth of 0.2 per cent in the previous three months.