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The UK economy expanded by 0.1% in August, according to official figures, giving a lift to Rachel Reeves ahead of next month’s crucial budget.

After the economy flatlined in July, the Office for National Statistics said gross domestic product had improved the following month. It keeps the UK on track to being one of the fastest-growing major economies this year.

The chancellor is weighing up raising funds from a series of tax rises in her 26 November budget to close a £20bn to £30bn budget spending gap that has opened up this year.

A Reuters poll of City economists expected a return to modest growth based mainly on a recovery in the manufacturing sector.

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.

More details to follow …

Workers at an under-threat oil refinery have accused ministers of “sitting on their hands”.

At a rally on Wednesday, members of the Unite union called for urgent action to secure the future of Lindsey Oil Refinery, which was taken over by the Official Receiver in June when Prax Group went into administration.

About 255 employees remain at the site in North Lincolnshire after 125 were told they would be made redundant this month. A jobs fair will be held in Immingham later to support them.

Speaking in the Commons, Energy Minister Michael Shanks said the government wanted to “support as much investment in that site as possible”.

Dave Smith, a Prax worker and union representative, said: “We’ve been asking the government for help and support – we know the country needs the fuel security, and yet they seem to be sitting on their hands.

“Everyone has been left scratching their heads wondering why we are in this position.”

Sub-contractor Anne Holmes, 63, said the site supported about 1,000 people, including those in the supply chain, and its closure would “a huge knock-on effect”.

“It’s not just the Prax employees, it’s the rest of us who work here as well,” she said.

“I’m an older person and I’m not going to get another job – this is it for me.”

Last week, an investment group expressed interest in joining forces with the government to buy the refinery.

In a debate in the House of Commons on Tuesday, Conservative MP Martin Vickers, who represents Brigg and Immingham, said the government “should be taking a more proactive role in determining the future of the refinery”.

He said “at least two investors” were “looking to take over the whole site” and asked whether the government would back this.

In response, Shanks said the Official Receiver was “considering a number of bids to make sure they are viable” and he would be happy to have conversations with Vickers on the subject.

Speaking at the rally, Sharon Graham, general secretary of the Unite union, said workers had been badly let down and urged the government to invest in green fuel production at the site.

“Ed Miliband again is missing in action, and we have a Labour government, and I’m sorry to say it, with absolutely no plans for the oil and gas industry,” she added.

The Insolvency Service said there were “ongoing discussions with a number of parties to progress bids with the objective of achieving a sale of the business”.

A jobs fair hosted by Grimsby Jobcentre was held at Immingham Civic Centre.

Representatives from British Steel, Myenergi, Humberside Engineering Training Association, Navigo and Associated British Ports attended the event, according to the Local Democracy Reporting Service.

Nick Gregory, the a manager at the job centre, said: “This is a very difficult time for those supply chain employees and their families and our hearts go out to them.”

The government has also offered a training guarantee designed to help workers find new employment.

Additional reporting by Ivan Morris-Poxton, Local Democracy Reporting Service.