LONDON, Dec 10 (Reuters) - Britain's economy shrank by a full percentage point in the three months to November and the pace of contraction looks set to accelerate into the end of the year, a leading think-tank said on Wednesday.
"The figures make clear that the rate of output decline is accelerating," the National Institute of Economic and Social Research said in its monthly assessment.
"There is every reason to believe that the output decline in the fourth calendar quarter of the year will be larger than 1 percent in magnitude."
The think tank revised its GDP estimate for the three months to October to show a decline of 0.8 percent, having originally estimated a contraction of 0.5 percent.
A marked deterioration in Britain's economic outlook has already prompted the Bank of England to slash interest rates to 2 percent, their lowest rate since 1951. The government announced a 20 billion pound package of tax cuts and spending increases last month, funding the measures with a huge increase in borrowing.
The think tank said the main problem was banks' reluctance to lend.
"The government faces the real risk that, despite the measures it took in last month's Budget, output will fall more sharply than it expected to the end of next year," it said. "The main problem it needs to address very urgently is the availability of bank credit." (Editing by Stephen Nisbet)