Chancellor Rachel Reeves has been dealt a fresh economic blow as official statistics confirm the UK's growth rate slowed significantly in the third quarter of 2025.
Growth Figures Revised Downwards
The Office for National Statistics (ONS) released new data showing the economy expanded by just 0.1 per cent between July and September. This figure was unrevised from earlier estimates. More concerningly, the ONS also revised its growth estimate for the second quarter (April to June) downwards from an initial 0.3 per cent to 0.2 per cent.
The slowdown was partly driven by a major disruption in the manufacturing sector. A significant cyber attack at Jaguar Land Rover severely impacted production and contributed to the weaker overall performance. This external shock highlights the vulnerability of key industries to digital threats.
Political Pressure Mounts on the Chancellor
The latest figures present a serious challenge for Chancellor Rachel Reeves, who entered the Treasury with a pledge to deliver higher and more sustainable economic growth. She now faces mounting accusations from political opponents that her policies, including planned tax increases, are 'anti-growth' measures stifling the recovery.
Despite the criticism, Ms Reeves has remained defiant about her long-term strategy. She has publicly stated her intention to be Chancellor "for years," suggesting she believes her fiscal plans will yield results over a longer timeframe than a single quarter.
UK Remains a G7 Leader Despite Slowdown
There is a crucial silver lining for the government within the data. Even with the quarterly slowdown, the UK's annual growth rate stands at 0.9 per cent. This performance means Britain is tied with Japan as the joint fastest-growing economy in the G7 group of advanced nations.
This context is likely to be emphasised by ministers to argue that, while facing short-term headwinds, the UK's underlying economic position relative to its major peers remains robust. The government's task will be to navigate the immediate pressures while convincing markets and the public of its long-term growth strategy.
