Economy grew 0.1% in August ahead of chancellor's first Budget

The UK's economy grew slightly in August, according to the last set of official figures before John Healey's Budget.

With the chancellor planning to set out his tax and spending plans at the end of the month, the Office for National Statistics said the economy expanded by 0.1% in the month.

The small increase follows growth of 0.4% in July, as well as positive upgrades to the outlook for Britain's economy from global watchdog the International Monetary Fund (IMF).

But Healey still faces a challenge to to deliver a balanced Budget without turning to more borrowing.

Britain's economy was boosted in August by an increase in production, which includes manufacturing, oil and gas extraction and energy supply.

The services industry, which makes up the largest chunk of the UK's economy, was flat during the month, while the construction sector contracted.

The figures come after Healey landed in Bangkok for the annual meeting of the International Monetary Fund (IMF).

Earlier this week, the global financial watchdog praised the UK's plans to cut debt levels, with global borrowing costs on the rise, with managing director Kristalina Georgieva adding that the country was seeing "a bit of a better growth prospect" than other G7 nations.

Arriving in Bangkok on Thursday, Healey said: "I'm pleased the IMF here in Bangkok backed our economic plans in London."

"They say the UK stands out on growth despite the deep economic shocks that are affecting worldwide at present."

He promised to "stay the path" as he prepares to deliver the Budget in two weeks' time.