The UK economy grew by 0.1 per cent in the three months to September, according to the Office of National Statistics, which is slower than expected.
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.
“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.
Read MoreUK economic growth slows ahead of Budget after JLR shutdown
Key points
- Reeves responds to slow GDP figures
- Shadow chancellor says PM and chancellor 'are in office but not in power'
- Growth slower than expected
- Why is GDP a crucial marker of how the UK economy is doing?
PM is going 'nowhere' says former Labour comms chief
08:40 , Bryony GoochAmid concerns around the Budget, pressure remains on Sir Keir Starmer following a leadership row following briefings against Health Secretary Wes Streeting.
Former Labour communication chief Tom Baldwin told BBC Radio 4’s Today programme he believes the Prime Minister is going “nowhere”.
Asked whether he thinks the Prime Minister is in control, Mr Baldwin said: “I think this is the time where he really can get a grip on this.”
The former journalist, known to be close to the Prime Minister, added: “Keir Starmer is going nowhere out of Downing Street.”
Mr Baldwin’s comments come as Sir Keir faces pressure to overhaul his “toxic” Downing Street operation, after the Health Secretary criticised briefings from No 10 suggesting that he was plotting a coup.
Speaking to Sky News yesterday, Mr Streeting said the “juvenile” briefing against him showed problems with the culture in Sir Keir’s administration.
Watch: Ed Miliband responds to Labour coup plot rumours
08:29 , Bryony GoochIndustry analysis: 'All eyes will be on the Budget after weak GDP reading'
08:22 , Bryony GoochScott Gardner, investment strategist at JP Morgan Personal Investing, has said that more pressure is on the upcoming Budget after the weak GDP figures.
“All eyes will now be on the upcoming Budget with another weak GDP reading only adding to debates around which levers the Chancellor can pull to stimulate growth. In our view, boosting housing market activity is key to unlocking decent, sustained growth.
“This is especially important as recent uncertainty around potential changes to stamp duty and council tax has impacted overall sales and led to a softening in some parts of the market, like London."
Analysis: 'Unspectacular' economic growth shows importance of policies to boost public and private investment
08:14 , Bryony GoochReacting to today’s quarterly GDP figures, Ashwin Kumar, director of research and policy at IPPR, said: “The UK continues to show unspectacular economic growth. Today’s figures emphasise the need for the government to continue with its policies to boost public and private investment, reform the planning system, and improve our trading relationship with the EU.
“The government needs to consider how it can provide more certainty to businesses looking to build and look at how it can reform taxes to promote growth.
“This quarter’s GDP figures were also affected by a major cyber attack on one car manufacturer, emphasising the real effects of cyber crime, and the economic value of measures to protect the UK from such activity.”
Miliband admits GDP figures are 'disappointing'
08:11 , Bryony GoochEd Miliband has admitted that this morning's GDP (gross domestic product) figures are "disappointing".
The UK economy grew by 0.1 per cent in the three months to September, according to the Office of National Statistics, which is slower than expected.
Just after it was announced, the energy secretary told BBC Breakfast: "These are disappointing figures."
He partly blamed the impact of the JLR cyber attack on the manufacturing sector, saying: "There were particular factors due to the JLR cyber attack that have affected the figures that come out today."
He added: "The government are very focused on taking the actions that can get growth going in our economy because that's the way to raise living standards."
Industry analysis: Economy 'losing steam' ahead of Budget
08:11 , Bryony GoochLindsay James, investment strategist at Quilter, has said that the economy is running out of steam ahead of the Autumn Budget.
"Industrial output was back in contraction in September, partly due to the Jaguar Land Rover cyber-attack issues. This paints a picture of an economy that started 2025 strongly but is now badly losing steam just as the Chancellor prepares for a pivotal Autumn Budget. Her next move will be critical if she is to recover Labour’s economic growth mission and prevent any whispers of a recession looming.
“The nature of this Budget remains crucial for what comes next. Encouragingly, inflation appears to have peaked. However, uncertainty over potential tax rises and persistent rumours of employers being targeted yet again, such as through an ill thought-out attack on DC pension contributions via salary sacrifice, risks snuffling out fragile business confidence and pushing unemployment, already now at five per cent markedly higher.
"It appears lessons from last year’s budget which pushed up employer national insurance contributions, with an ensuing inflationary impact on service sector price inflation and the labour market, have not yet been learned."
Miliband categorically rules out running for Labour leader
08:07 , Bryony GoochEd Miliband has categorically ruled out running again for Labour leader as his name is among the senior party figures mentioned as Keir Starmer faces being ousted in the midst of the GDP slow down.
Asked on BBC Breakfast if he would "categorically" rule himself out of any potential race, the energy secretary said, "Yep," before jokingly adding: "I've had this great thing where I've had the best inoculation technique about wanting to be leader of the Labour Party, because I was between 2013-15. I've got the t-shirt that chapter's closed, thanks."
'He hates this stuff': Miliband vows Starmer will 'get rid' of aide who briefed against Streeting
08:06 , Bryony GoochConcerns about the budget come as the government faces issues around a leadership row.
Ed Miliband has vowed that Keir Starmer will "get rid" of the Downing Street aide who briefed against Wes Streeting, saying the prime minister "hates this stuff".
A civil war has erupted within the Labour party, with Sir Keir facing threats to his leadership, and the health secretary rumoured to be plotting a coup.
After it emerged that No 10 briefed against Mr Streeting, the energy secretary told BBC Breakfast this morning: "They should be sacked. I know the prime minister will want to find who that person is and will get rid of them if he can find them... It's often very hard to find out who does these briefings... Of course, if Keir Starmer finds that person, he'll get rid of them, I have absolute faith he'll do that – he hates this stuff."
Analysis: Interest rate cuts certain for December
08:02 , Karl Matchett, Business EditorBusiness 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?
An almost dead cert we now get an interest rates cut in December.
PM will 'get rid' of person behind briefing that unleashed leadership row
07:58 , Bryony GoochThe 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.”
TUC: Government must 'stay the course' and use Budget to support living standards
07:44 , Bryony GoochTUC general secretary Paul Nowak said: “Bringing our economy back on track after 14 years of Tory chaos was never going to be straightforward. Cyber attacks on major manufacturers and a volatile international context are not making this job any easier.
“While previous retail sales figures were encouraging, consumer spending is still subdued - the government should now stay the course and use the Budget as an opportunity to keep supporting living standards.
“More money in people’s pockets will mean more spending on our high streets, more jobs, and stronger growth.
“But the Treasury are not the only actor at play here. The Bank of England needs to cut interest rates as a matter or priority – and end long-standing restraint on families’ and businesses’ finances.”
What was the JLR cyber attack?
07:42 , Bryony GoochThe cyber attack on Jaguar Land Rover (JLR) is estimated to have been the most economically damaging hack in UK history and cost the country around £1.9 billion.
JLR stopped production across its UK factories for five weeks from September 1 after being targeted by hackers.
Around 5,000 businesses across the country have been hit by the fallout of the attack, according to research from the Cyber Monitoring Centre (CMC).
Experts from the non-profit organisation have analysed the impact of the cyber attack across the economy and wider supply chain.
Shadow chancellor says PM and chancellor 'are in office but not in power'
07:40 , Bryony GoochThe Conservatives said Sir Keir Starmer and Rachel Reeves are “in office but not in power” in response to the latest GDP figures showing that UK economic growth slowed.
Shadow chancellor Sir Mel Stride said: “Today’s ONS figures show the economy shrank in the latest month, under a prime minister and chancellor who are in office but not in power.
“Months after the prime minister stripped the chancellor of responsibility for the Budget, Keir Starmer has now lost control of his own Downing Street operation – with his team openly at war with his Cabinet.
“If the prime minister does not have the backbone to control his team, he has no hope of reducing spending. Only the Conservatives have a leader with a backbone and a plan to deliver £47 billion of savings – allowing us to cut tax and cut the deficit under our golden economic rule.”
Reeves responds to slow GDP figures
07:38 , Bryony GoochIn response to the latest GDP data, chancellor Rachel Reeves said: “We had the fastest-growing economy in the G7 in the first half of the year, but there’s more to do to build an economy that works for working people.
“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.”
JLR cyber attack impacted economy, says ONS chief
07:21 , Bryony GoochOffice of National Statistics director of economic statistics Liz McKeown has said that growth was impacted by a fall in car production, as a result of the JLR cyber attack.
She said: “Growth slowed further in the third quarter of the year with both services and construction weaker than in the previous period.
“Across the quarter as a whole manufacturing drove the weakness in production.
“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.”
GDP a 'damning indictment of Labour’s disastrous decisions'
07:16 , Bryony GoochLiberal Democrat Treasury spokesperson Daisy Cooper MP said: "This is a damning indictment of Labour’s disastrous decisions.
"From the jobs tax to business rates bills, the economy is barely spluttering along.
"The chancellor must take up our plans for an emergency package to save our high streets, put money back in the pockets of families and finally fix our broken relation with Europe to bring in billions for our public services."
As growth slows, could the Bank of England cut interest rates?
07:12 , Bryony GoochConcerns over a slowdown growth have led to predictions from economists that the Bank of England will cut interest rates next month, to 3.75 per cent, and could cut rates deeper than previously expected.
Policymakers will also look at the latest inflation data, which will be released next week, when they assess the next vote on interest rates.
Experts predicted 0.2 per cent slow down
07:09 , Bryony GoochThe 0.1 per cent growth is slower than experts predicted, after they already suggested it would slow down in the third quarter.
Experts predicted that the Office for National Statistics would report 0.2 per cent growth over the three months to September in their latest update on Thursday morning.
It will represent a slowdown after 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 announces latest growth figures
07:08 , Bryony GoochGDP grew 0.1% in Quarter 3 (July to Sept) 2025.
Services (+0.2%) and construction (+0.1%) grew while the production sector fell (-0.5%).
Read the article ➡️ https://t.co/XOrSeP3V5T pic.twitter.com/dEfTk6xqiz
Growth slower than expected
07:04 , Bryony GoochThe UK economy grew by 0.1% in the three months to September, according to the ONS, which is slower than expected.
Analysis: Slow growth over third quarter would present setback for Reeves
07:01 , Bryony GoochRachel Reeves and the government have been hopeful that stronger economic growth can help increase tax revenues and support government spending plans.
Slow growth or a stagnant economy over the third quarter would present a setback for the chancellor.
Sanjay Raja, chief UK economist at Deutsche Bank, has said the positive tempo in the economy earlier this year has “tempered” in the second half.
He added: “Anticipated weakness in growth is a result of weaker industrial production activity, and primarily weaker oil and manufacturing output.
“We expect the construction sector to remain flat on the month, with services activity just about inching higher to end Q3.”
UK economists predict growth to have slowed
06:55 , Bryony GoochGDP grew by 0.3 per cent in the three months to August 2025 compared with the three months to May 2025, a slight increase following growth of 0.2 per cent in the three months to July 2025.
But Sanjay Raja, chief UK economist at Deutsche Bank, predicts this will not last and UK economic growth will have slowed further over the third quarter of 2025.
He said: “Anticipated weakness in growth is a result of weaker industrial production activity, and primarily weaker oil and manufacturing output.
“We expect the construction sector to remain flat on the month, with services activity just about inching higher to end Q3.”
Why is GDP a crucial marker of how the UK economy is doing?
06:52 , Bryony GoochEvery month the Office of National Statistics (ONS) publishes new GDP figures.
In the run-up to the budget on 26 November these figures are a marker for how well the economy is doing.
Rising GDP signals economic growth, which is generally welcome news for the country’s companies, households and politicians.
When GDP is falling, it means the economy is shrinking. If it falls for two quarters in a row, the country is considered to be in a recession which can hit wages and jobs.
Rachel Reeves and the government have been hopeful that stronger economic growth can help increase tax revenues and support government spending plans.
Slow growth or a stagnant economy over the third quarter would present a setback for the chancellor.
