The disappointing retail data adds to the dim economic picture in the U.K. and to the challenges facing Finance Minister Rachel Reeves.

The Bank of England will cut interest rates four times this year to support a flat-lining economy, economists polled by Reuters said, but they added that risks to inflation are to the upside, suggesting policymakers may end up doing less.

Alan Taylor, the most recently appointed member of the Bank's monetary policy committee (MPC) said the UK is 'in the last half mile on inflation' and called for a pre-emptive cut

Alan Taylor, an external member of the Bank's Monetary Policy Committee (MPC), said a series of radical cuts could be on the agenda

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

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,

The Office for National Statistics estimated the UK economy grew in November by 0.1% after falling by 0.1% in both September and October.