The U.K. economy grew at a lackluster pace of 0.1% in November, data from the Office of National Statistics showed Thursday.

The pound fell on Thursday after data showed the British economy grew more slowly than expected in November, which could give the Bank of England more room to cut interest rates this year.

Britain's economic output returned to growth in November, the first month after finance minister Rachel Reeves announced big tax increases for businesses, but the expansion was smaller than expected.

But with tax rises coming into effect in April, the sluggish figures have fuelled further concerns that stagnant growth could persist in the UK for some time. Chancellor Rachel Reeves, who has been under pressure after the market turmoil threatened her economic plans,