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The chancellor is planning moves to help households with the cost of living in the Budget.
The project would have given the UK a strategic foothold in the rare earths industry.
The 0.1% growth follows a slight contraction in the economy during July, official figures show.
Its parent company said affected staff would be "offered redeployment opportunities where possible".
The cereal-maker's new boss says he wants to instil a "performance mindset" and prioritise earnings.

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