UK economy latest: Growth slower than expected at 0.1% ahead of crucial Reeves Budget

The UK economy experienced slower-than-anticipated growth, expanding by just 0.1% in the third quarter of 2025. This figure fell short of expert predictions, which had forecast 0.2% growth, and represents a continued slowdown after 0.3% growth in the previous quarter and a more robust 0.7% in the first three months of the year. The Office for National Statistics (ONS) attributed the sluggish growth primarily to a significant drop in car production in September, which was a direct result of a cyber incident impacting Jaguar Land Rover (JLR). This cyber attack, estimated to be the most economically damaging in UK history, caused JLR to halt production across its UK factories for five weeks, affecting an estimated 5,000 businesses and costing the country approximately £1.9 billion. The pharmaceutical industry also saw a decline, contributing to the weakness in the manufacturing sector. In response to these figures, Chancellor Rachel Reeves acknowledged that while the UK had the fastest-growing economy in the G7 in the first half of the year, "there's more to do to build an economy that works for working people." She indicated that her upcoming Budget would involve "fair decisions to build a strong economy" aimed at cutting waiting lists, national debt, and the cost of living. Other political figures offered critical reactions. TUC general secretary Paul Nowak urged the government to "stay the course" and use the Budget to support living standards, suggesting more money in people's pockets would boost spending and growth, while also calling on the Bank of England to cut interest rates. Liberal Democrat Treasury spokesperson Daisy Cooper MP described the GDP figures as a "damning indictment of Labour’s disastrous decisions." Economists are now suggesting that concerns over the slowing growth might lead the Bank of En... download the app to read more