The UK has officially moved into a recession after two consecutive quarters of negative economic growth.

Figures from the Office for National Statistics revealed that economic output fell by 0.5% between July and September, which was at the worst end of most analysts' expectations. Many had expected the economy to shrink by around 0.1%.

The news will come as a further blow to small businesses, which are already struggling with rising costs, falling demand and a lack of cashflow.

The government has announced measures designed to encourage banks to start lending again while the Bank of England is expected to cut interest rates again in the near future.