Experts predicted GDP (gross domestic product) figures would report 0.2 per cent growth, a slowdown from the 0.3 per cent in the previous quarter, continuing a notable drop-off after a 0.7 per cent rise in the first three months of the year
ONS director of economic statistics Liz McKeown linked slow growth to the impact of the JLR cyber attack on the manufacturing sector.
Budget blow for Reeves after latest UK growth figures announced: Live updates
UK economic growth has slowed further to 0.1 per cent over the third quarter of 2025 ahead of the autumn Budget
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“At my Budget later this month, I will take the fair decisions to build a strong economy that helps us to continue to cut waiting lists, cut the national debt and cut the cost of living.”
“Across the quarter as a whole manufacturing drove the weakness in production,” she said. “There was a particularly marked fall in car production in September, reflecting the impact of a cyber incident, as well as a decline in the often-erratic pharmaceutical industry.”
Chancellor Rachel Reeves is set to deliver her crucial Budget on 26 November.
The government has been hopeful that stronger economic growth can help increase tax revenues and support spending plans.
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Business Editor Karl Matchett reflects on the GDP figures:
So the latest GDP figures confirm the economy remains growing, but in the same way that snails move: in imperceptible fashion. 0.1 per cent growth over three months to September reinforces what many business leaders and public organisations have been saying: firms have put plans on hold until the environment is more favourable, and people have held off major plans due to uncertainty around the upcoming Budget.
Production output falling is a real issue for the government to face, especially on the back of last week's data showing employment at record post-Covid levels. Even more worrying, any 'growth' was front-loaded in this quarter, with August's figures revised down to no growth and monthly GDP falling 0.1 per cent in September itself. One outcome of all this?
PM will 'get rid' of person behind briefing that unleashed leadership row
The prime minister will “get rid” of the person behind a briefing that unleashed a leadership row if he finds them, energy secretary Ed Miliband has said.
“I’ve talked to Keir before about this kind of briefing that happens. As he always says, if he finds the person, he’ll get rid of them, and I absolutely believe he would do that,” he told Sky News.
Asked if he thought Sir Keir Starmer would sack the person, he said, “Sure, yeah.”
He also noted that briefing is a “longstanding aspect” of politics and pointed back to there being “lots and lots of briefing” under Sir Tony Blair and Gordon Brown.
“Look, I think the briefing has been bad, no question. But my message to the Labour Party, though, is quite simple today, which is, we need to focus on the country, not ourselves,” he told Sky News.
He added: “Turbulence is part of the gig, is part of the DNA of being in government.”
- This slowdown, driven in part by a cyber-attack on Jaguar Land Rover (JLR) that negatively impacted manufacturing and car production, means less tax revenue to fund government plans and increases pressure on Reeves to find money for spending commitments.
- Some economists predict this weak growth will put more pressure on the government, potentially leading to higher taxes or spending cuts
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