UK economy expands as GDP rises by 0.1% in August ahead of crucial budget

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The UK economy expanded by 0.1% in August, according to official figures, giving a lift to Rachel Reeves before next month’s crucial budget.A boost from the manufacturing sector helped the economy improve along with a strong performance by the health sector.However, the Office for National Statistics (ONS) said it had revised down July’s flatlining growth to a 0.1% contraction, limiting the rise in output over the three months to August to 0.

3%.Analysts said the UK’s economic outlook was likely to continue improving, but at a sluggish pace while businesses and consumers waited to see the outcome of the chancellor’s budget on 26 November.The latest spat between Donald Trump and Beijing over tariffs will also add to uncertainty on international financial markets about the likely path of global trade.The chancellor is weighing up raising funds from a series of tax rises in her autumn budget to close a £20bn-£30bn budget spending gap that has opened up this year.The UK’s manufacturing industry reversed a 1.

1% fall in July to grow by 0.7% in August, lifted by a strong increase in output by the pharmaceutical sector.The services sector, which covers about three-quarters of economic activity, flatlined for the second consecutive month.The construction sector shrank in August by 0.3% month on month, with a decline in maintenance and repair work offsetting a 0.

5% increase from new building work.The GDP figures were in line with a Reuters poll of City economists, which expected a return to modest growth of 0.1% in August based mainly on a recovery in the manufacturing sector.It keeps the UK on track to meet International Monetary Fund forecasts on Tuesday that it will be the second-fastest growing economy in the G7 group this year.Inflation is forecast to begin easing before the end of the year and the Bank of England is expected to make further interest rate cuts in 2026, easing the pressure on household incomes.

Fergus Jimenez-England, an associate economist at the National Institute of Economic and Social Research, said recent data had shown there would be only “limited growth” in the third quarter to the end of September “after a difficult summer for businesses”.He added: “Regaining momentum hinges on restoring business confidence and reducing uncertainty, which the government can support by setting aside a larger fiscal buffer in the upcoming budget.”Sign up to Business TodayGet set for the working day – we'll point you to all the business news and analysis you need every morningafter newsletter promotionThe CBI business lobby group said: “Many businesses reported subdued demand and higher operating costs.And firms are choosing to sit tight on hiring and investment until there’s more clarity on the policy outlook.”The ONS also flagged revisions going back as far as the months before the first Covid-19 pandemic lockdown, which found that the UK had grown at a faster pace than previously estimated.

The ONS said growth since February 2020 was 5.5% rather than the 4.4% previously included in the official figures.Kallum Pickering, the chief economist at the stockbroker Peel Hunt, said the upgrade had “far-reaching positive implications” for the trajectory of growth and productivity estimates by the Office for Budget Responsibility, the Treasury’s independent forecaster.Separate reports by the Resolution Foundation and the Centre for Cities thinktanks also found that the UK’s productivity – which measures the output per worker in a period of time – had been higher over recent years than previously estimated, giving a boost to growth and tax receipts.

A spokesperson for the Treasury said: “We have seen the fastest growth in the G7 since the start of the year, but for too many people our economy feels stuck,Working day in, day out without getting ahead,“The chancellor is determined to turn this around by helping businesses in every town and high street grow, investing in infrastructure and cutting red tape to get Britain building,
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That won’t wash: should you rinse your mushrooms?

What’s the best way to prep and cook mushrooms? Should I wipe, wash or simply peel them? Olivia, by email “I could witter on about mushrooms all day,” says fungi fan Will Murray, which is good news, because Olivia’s question is somewhat contentious. The chef and co-founder of Fallow, Fowl and Roe, all in London, even grows his own shrooms, and advises his chefs to clean them “at least three times in bowls of cold water”, which brings us straight to the great mushroom washing debate, which has been rumbling on for years.Writing in the Guardian in 2003, Heston Blumenthal called advice against washing mushrooms in water in case they become waterlogged “nonsense”. He cites Harold McGee, who tested this theory in his book The Curious Cook: “McGee weighed 252g fresh mushrooms, submerged them in water for five minutes, then removed them, blotted the surface moisture and reweighed them.” The result was 258g, which, as McGee noted, is a 16th of a teaspoon of extra water per mushroom

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Thomasina Miers’ recipes for mushroom linguine with chard, and poached pears with spiced hazelnut crumble

My farmers’ market (and my beds) are full of swiss chard. It is one of the few edible plants I could cope with this year – it grows with such ease and grows back so quickly after each picking that I feel it is the ultimate kitchen gardener’s friend. It is a great bedfellow for mushrooms, which lend a bit of meatiness to those leaves. With those, I also like to add ancho, a rich, full-bodied but not spicy chilli that is readily available in flaked form in many supermarkets around the country (nora or guajillo are good substitutes), while the feta, like queso fresco in Mexico, adds a lovely, tangy saltiness. It’s a dish for those Sundays when you are low on time, but want a rich, soothing feast

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Rukmini Iyer’s quick and easy recipe for lime dal with roast squash and chilli cashews | Quick and easy

This might come as a surprise to some readers, but I am not a fan of dal. There were just two versions that I liked, and both were made by my mother: one with lime and coconut, the other a slow-cooked black dal with cream (even nicer than the Dishoom version). But now a third quick-cook dal has made it into my hall of fame. And the secret? Blitzing it until very smooth, then serving with a topping of roast squash and moreish chilli cashews. It’s a revelation that’s now on my weekly rotation

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Cauliflower risotto and sausages with squash and beans: Sophie Wyburd’s recipes for autumn warmers

I am the scrooge who relishes the end of summer, and who welcomes the darker evenings with open arms. After patiently waiting for tomatoes and aubergines to be done with their performance, autumn brings its own bounty of vegetables back into play, with squash, cauliflower and dark, leafy greens being some of my favourites. They’re ideal for loading into comforting dishes to hunker down with, and lend even the most indulgent meals a bit of goodness.Prep 10 min Cook 1 hr 10 min Serves 47 tbsp olive oil 1 onion, peeled and finely chopped 2 garlic cloves, peeled and finely chopped15g rosemary, finely chopped8 good-quality pork sausages 600g butternut squash, peeled, deseeded and cut into 3cm chunks 400ml chicken stock 2 560g jars of butter beans 70g sourdough breadcrumbs Salt and black pepper 150g cavolo nero 40g parmesan Finely grated zest of 1 lemon, plus the juice of half, and optional lemon wedges to serveOver a medium flame, heat three tablespoons of the oil in a large, shallow casserole dish for which you have a lid. Tip in the chopped onion and cook, stirring, for 15 minutes, until softened

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How to make cinnamon buns – recipe | Felicity Cloake's Masterclass

There are few joys quite like a sticky bun. As soft and sweet as an edible pillow, they’re a lovely thing to sink into with a cup of coffee and, though they look impressive, they’re also unexpectedly easy to make at home. This Scandinavian version is cinnamon flavoured, but feel free to change the seasoning to suit your palate.Prep 30 min Rest 1 hr+Cook 25 min Makes 71 tsp ground cardamom seeds (from about 25 pods; see step 1)300ml whole milk 50g butter, roughly cubed425g plain flour 60g caster sugar ¼ tsp fine salt 7g fast-action/instant yeast 1 egg Oil, for greasingFor the filling75g butter, softened50g dark brown sugar 2 tsp cinnamon ½ tsp saltTo finish1 egg, lightly beaten Demerara or granulated sugarGround cardamom is fairly easy to find these days, but if you don’t mind a bit of fiddly work, you should get a teaspoon or so of powder from the ground seeds of about 25 pods. Alternatively, for a milder flavour, use the seeds whole and strain them out of the milk later

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Punk Royale, London W1: ‘Someone shoved mystery slop in my mouth’ – restaurant review | Grace Dent on restaurants

Punk Royale, from Stockholm, has landed in London promising, or rather threatening, that their rowdy, immersive, 20-course fine-dining experience will destroy all puny British perceptions of posh food. It’s a huge claim from these Swedish punks. Indeed, nearly 50 years after the UK invented punk, with the Sex Pistols effing and jeffing on live TV and provoking a national meltdown, here we have some folk with mullets and Roxette CDs slopping “bumps” of caviar on to my hand shortly after beckoning me into a shoddily decorated, fusty-smelling dining room in Mayfair. It’s all a bit student house and needs a good visit from Mr Sheen. That bump, one supposes, is a playful twist on taking cocaine at a grotty afterparty