The CBI, which claims to represent 170,000 firms, said companies expect to “reduce both output and hiring” and raise prices as a result of the tax rises announced in the government’s Budget.

The UK economy is measured by gross domestic product – a measure of all the economic activity of companies, governments and people in the country.

The ONS puts out initial estimates on the UK’s economic performance and revises them once it receives more data.

On Monday it also revised down growth figures for April to June to 0.4% from 0.5%.

It said the economy was weaker than initially estimated as bars and restaurants, legal firms and advertising firms performed less well.