LIVING standards continue to be squeezed as official figures today showed the economy fell unexpectedly in May rounding off Rachel Reeves’s problematic first year as chancellor. The Office for National Statistics (ONS) revealed gross domestic product (GDP) contracted by 0.1 per cent in May, following a 0.3 per cent drop in April.

Chancellor Rachel Reeves has called the economy's recent performance "disappointing" after figures showed it shrank unexpectedly in May. The economy contracted by 0.1%, the Office for National Statistics (ONS) said, after also shrinking in April.

Rachel Reeves’ waning growth agenda has been dealt another blow after the UK economy contracted 0.1 per cent in May. The Chancellor has endured a bruising few weeks after government U-turns and spending splurges have cut into the fiscal headroom she outlined in the Autumn.