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The economy unexpectedly shrank in August, contracting by 0.3% on the previous month.

The growth in July has also been revised downwards, from the previously recorded 0.2% to 0.1%.

The Office for National Statistics released its latest reading on the UK’s performance as the government frets over the prospect of recession ahead, given the toll placed on demand by the cost of living crisis.

The result for August is worse than expected, as no growth rather than shrinking was anticipated.

It is likely that the contraction will result in a sharper period of slowdown in September.

“August’s negative out-turn should be followed by a more marked drop in September’s output as the extra bank holiday for the Queen’s funeral will have added to the downwards pressure on activity,” Suren Thiru, economics director of the Institute of Chartered Accountants in England and Wales, said.

Commentators now suspect the UK is nearing a recession.

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“UK economy teetering on the edge of recession,” Yael Selfin, chief economist at KPMG UK, said.

“The ongoing squeeze on household finances continues to weigh on growth, and likely to have caused the UK economy to enter a technical recession from the third quarter of this year.”

Mr Thiru added: “The government has needlessly risked a longer recession with any boost from the energy package likely to be dwarfed by a sustained squeeze on UK output from persistently high inflation, punishing interest rate rises and acute financial market turbulence.”

Samuel Tombs, chief UK economist at Pantheon Macroeconomics, said: “August’s drop in GDP likely marks the start of a downward trend that will continue deep into next year.”

The ONS figures were dismissed as estimates by Jacob Rees-Mogg, the business secretary, who told Sky News that “figures that are released immediately are very often revised”.

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Jacob Rees-Mogg on Kay Burley

Action by the Bank of England to tame inflation, through successive interest rate increases, is adding to the cost burden for borrowers.

The Bank’s tightening has placed its mandate to control inflation at odds with the agenda of the new Truss administration, which has set a target for annual economic growth of 2.5%.

The mini-budget last month, which contained energy bill help for households and businesses along with a series of tax cuts, prompted turmoil on financial markets.

The resulting crisis of credibility forced down the value of the pound and raised government borrowing costs to such an extent that the Bank had to intervene.

The International Monetary Fund warned on Tuesday that the government should ensure its tax and spending plans are in line with the Bank of England’s inflation-fighting remit.

In other words, the priority should be tackling inflation rather than adding to the price problem through tax giveaways to achieve economic growth.

The IMF welcomed the prospect of an earlier-than-expected debt plan from Kwasi Kwarteng, the chancellor.

That will now be delivered to MPs on 31 October and contain independent analysis from the Office for Budget Responsibility.

Responding to this morning’s announcement, Mr Kwarteng said the UK was facing global challenges that his government’s growth plan will address.

“Countries around the world are facing challenges right now, particularly as a result of high energy prices driven by Putin’s barbaric action in Ukraine,” he said.

“That is why this government acted quickly to put in place a comprehensive plan to protect families and businesses from soaring energy bills this winter.

“Our Growth Plan will address the challenges that we face with ambitious supply-side reforms and tax cuts, which will grow our economy, create more well-paid skilled jobs and in turn raise living standards for everyone.”

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UK’s first taxpayer-funded injection room to open in radical move to tackle drugs epidemic

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UK's first taxpayer-funded injection room to open in radical move to tackle drugs epidemic

Glasgow has been a city crying out for solutions to a devastating drugs epidemic that is ravaging people hooked on deadly narcotics. 

We have spent time with vulnerable addicts in recent months and witnessed first-hand the dirty, dangerous street corners and back alleys where they would inject their £10 heroin hit, not knowing – or, in many cases, not caring – whether that would be the moment they die.

“Dying would be better than this life,” one man told me.

It was a grim insight into the daily reality of life in the capital of Europe’s drug death crisis.

Scotland has a stubborn addiction to substances spanning generations. Politicians of all persuasions have failed to properly get a grip of the emergency.

But there is a new concept in town.

From Monday, a taxpayer-funded unit is allowing addicts to bring their own heroin and cocaine and inject it while NHS medical teams supervise.

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It may be a UK-first but it is a regular feature in some other major European cities that have claimed high success rates in saving lives.

Glasgow has looked on with envy at these other models.

One supermarket car park less than a hundred metres from this new facility is a perfect illustration of the problem. An area littered with dirty needles and paraphernalia. A minefield where one wrong step risks contracting a nasty disease.

Drugs paraphernalia in a supermarket car park in Glasgow, near the new facility
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Drugs paraphernalia in a supermarket car park in Glasgow, near the new facility

It is estimated hundreds of users inject heroin in public places in Glasgow every week. HIV has been rife.

The new building, which will be open from 9am until 9pm 365 days a year, includes bays where clean needles are provided as part of a persuasive tactic to lure addicts indoors in a controlled environment.

There is a welcome area where people will check in before being invited into one of eight bays. The room is clinical, covered in mirrors, with a row of small medical bins.

Clean needles are provided to lure addicts to inject in a controlled environment
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Clean needles are provided to lure addicts to inject in a controlled environment

One of the eight bays users can inject in
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There are eight bays users can inject in

We were shown the aftercare area where users will relax after their hit in the company of housing and social workers.

The idea is controversial and not cheap – £2.3m has been ring-fenced every year.

The aftercare area
Image:
The aftercare area

Read more: ‘Dying would be better than my £1,000 a month heroin addiction’

Authorities in the city first floated a ‘safer drug consumption room’ in 2016. It failed to get off the ground as the UK Home Office under the Conservatives said they would not allow people to break the law to feed habits.

The usual wrangle between Edinburgh and London continued for years with Downing Street suggesting Scotland could, if it wanted, use its discretion to allow these injecting rooms to go ahead.

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The stalemate ended when Scotland’s most senior prosecutor issued a landmark decision that it would not be in the public interest to arrest those using such a facility.

One expert has told me this new concept is unlikely to lead to an overall reduction in deaths across Scotland. Another described it as an expensive vanity project. Supporters clearly disagree.

The question is what does success look like?

The big test will be if there is a spike in crime around the building and how it will work alongside law enforcement given drug dealers know exactly where to find their clients now.

It is not disputed this is a radical approach – and other cities across Britain will be watching closely.

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UK weather: Temperatures could fall as low as minus 20C as big freeze continues

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UK weather: Temperatures could fall as low as minus 20C as big freeze continues

Temperatures in northern parts of the UK could fall as low as minus 20C on Friday night as wintry weather continues, the Met Office has said.

There are yellow warnings for ice on Friday morning covering the eastern coast of England and Scotland, the South West, Wales and Northern Ireland.

There is also a yellow warning for snow and ice for northern Scotland. All the warnings expire before midday.

In addition, freezing fog is predicted across central and southeast England, and in parts of Wales, which may be “quite stubborn to clear” on Friday morning, said Met Office meteorologist Liam Eslick.

“It’s going to be another cold couple of days,” he added, and all areas of the UK are likely to experience sub-zero temperatures.

St Andrew's church, Kiln Pit in Durham Pic: PA
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St Andrew’s church at Kiln Pit in Durham. Pic: PA

Friday night may bring the coldest temperatures of the current cold snap, with temperatures possibly plummeting as low as minus 15C or even minus 20C.

“That’s probably the lowest limits we’re expecting,” Mr Eslick said.

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“We probably don’t really expect many places to get close to minus 20C, but we could see one or two places that could just touch that mark overnight Friday into Saturday.”

That is because of still conditions, high pressure, “not a lot of wind and clear skies”.

In addition, snow on the ground helps to create “sort of a perfect scenario to see those temperatures just plummet”, Mr Eslick added.

Saturday is also likely to be bitterly cold, while Sunday is forecast to be a little warmer.

On Monday, temperatures are expected to be more in line with the seasonal norm, at about seven or eight degrees Celcius.

A woman feeds ducks in a frosty High Wycombe Pic; PA
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A woman feeds ducks in a frosty High Wycombe. Pic: PA

Read more:
Ticket re-sales could be capped under crackdown on touts
First taxpayer-funded injection room to tackle drugs epidemic

The freezing conditions have led to travel disruption, with Manchester Airport closing both its runways on Thursday morning because of “significant levels of snow”. They were later reopened.

Transport for Wales closed some railway lines because of damage to tracks.

Hundreds of schools in Scotland and about 90 in Wales were shut on Thursday.

Meanwhile, staff and customers at a pub thought to be Britain’s highest were finally able to leave on Thursday after being snowed in.

The Tan Hill Inn in Richmond, North Yorkshire, is 1,732 feet (528m) above sea level.

Six staff and 23 visitors were stuck, the pub said on Facebook.

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Major companies part of drive to get thousands of offenders in work

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Major companies part of drive to get thousands of offenders in work

Bosses of leading high street businesses are set to lead a new drive to cut crime and get ex-offenders into stable jobs.

It’s part of a government initiative creating 11 new regional employment councils across England and Wales.

Leaders from firms including the Co-Op, Iceland, Greggs, and Oliver Bonas will provide voluntary advisory roles in conjunction with probation, job centres, and the Department for Work and Pensions.

The idea is to help ex-prisoners find work while they serve the remainder of their sentence in the community.

The government says roughly 80% of offending is reoffending, while the latest data shows offenders unemployed six weeks after leaving jail have a reoffending rate more than twice that of those in work – 35% versus 17%.

The employment councils will supplement the work of existing employment advisory boards, created by the former Timpsons chief executive, now prisons minister, Lord Timpson.

The advisory boards bring local leaders into 93 individual jails to help provide education and training advice, but largely stop at the prison gates.

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The government wants the new councils to act as better bridges for offenders, under one umbrella – bringing together probation, prisons and local employers, helping prison leavers look for work.

This will include connections with work coaches at job centres that will provide mock interviews, CV advice and training opportunities in the community.

Read more:
Thousands of prison cells shut for fire safety
Prison recalls soar as ‘broken’ justice system struggles

Lord Timpson called the new scheme and partnering with business a “win win”.

“Getting former offenders into stable work is a sure way of cutting crime and making our streets safer,” he said.

Last month Sky News heard from former offender, Terry, now employed at the cobblers and key cutters Timpsons, about what he calls an “invisible stigma” for those with criminal records seeking employment.

He said getting a secure job was life-changing because without other options “you’re probably going to think about doing crime”.

Annie Gail, head of social impact at Cook Foods, which is taking part of the government’s new scheme, also told Sky News that prison leaver programmes such as theirs are “challenging”.

She said having ex-offenders in public-facing roles “can cause concern” but insists “good business is about more than just turning a profit” and instead is about being “a force for good in society”.

The new scheme is set to start next week, and plans to get thousands of ex-offenders into stable jobs, away from a life of crime.

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