UK economy slows ahead of budget

November 13, 2025 (MLN):  Britain’s economy slowed in the third quarter, growing just 0.1%, down from 0.3% in the previous quarter, official data showed Thursday, raising concerns ahead of the Labour government’s upcoming budget.

The Office for National Statistics (ONS) said the figure was below analysts’ expectations of 0.2% growth and came alongside a rise in unemployment to 5.0%.

 Weak consumer demand, disruptions in manufacturing, and higher business taxes introduced last year have all been cited as factors behind the slowdown, APP reported.

September alone saw the economy contract 0.1%, as a cyberattack on Jaguar Land Rover hit car production, while services and construction sectors also weakened. The often-volatile pharmaceutical industry also contributed to the slowdown.

Finance Minister Rachel Reeves indicated that taxes on some salaries could rise in the November 26 budget to help reduce government debt and fund public services.

 “There’s more to do to build an economy that works for working people,” she said, adding she would make “fair decisions to build a strong economy.”

The latest quarterly growth figure is far below the 0.7% expansion recorded in the first quarter, highlighting ongoing economic challenges for Prime Minister Keir Starmer’s Labour government since taking office last July.

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