Britain’s economy returned to growth in August, official figures show, in a boost for Rachel Reeves as she prepares to unveil her first Budget as Chancellor.

Gross domestic product (GDP) grew by 0.2pc during the month, according to the Office for National Statistics.

The expansion follows two months of zero growth experienced in June and July, and was in line with analyst forecasts.

Ms Reeves will unveil her Budget on October 30 in which she is expected to raise taxes to fill a £25bn gap in the public finances.

The GDP figures come as the Prime Minister and the Chancellor will host an International Investment Summit on Oct 14, with up to 300 industry leaders due to attend.

Global business leaders will be told by Sir Keir Starmer and Ms Reeves that the UK is “open for business”, with a key pitch from ministers expected to be that the UK represents a more politically stable investment proposition than other leading countries in the West.

Britain’s economic contraction comes after the Organisation for Economic Cooperation and Development (OECD) sharply revised up its forecast for UK GDP in 2024 from 0.4pc to 1.1pc, which is the biggest upgrade of any country in the G7.

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