UK Economy Hits Brakes Ahead of Crucial Budget
The UK's economic expansion slowed sharply in the run-up to the autumn Budget, presenting a significant challenge for the Chancellor. Official data revealed that growth decelerated to just 0.1 per cent in the three months leading to September.
This figure marks a notable drop from the 0.3 per cent growth recorded in the previous quarter and fell short of economists' expectations, who had predicted the economy would remain stagnant.
Manufacturing and Key Sectors Weaken
The economic slowdown was driven by a broad-based weakness across several critical industries. The Office for National Statistics (ONS) reported a particularly tough period for the manufacturing sector.
A major contributing factor was a disruptive cyber attack on Jaguar Land Rover, which led to a significant fall in car production. The pharmaceutical industry also contracted, while both the services and construction sectors showed weaker performance.
Budget Pressures Mount for Chancellor
This disappointing growth data arrives at a politically sensitive time, with Chancellor Rachel Reeves preparing to deliver the autumn Budget. The slowdown limits the government's fiscal flexibility and puts a sharper focus on potential tax decisions.
In a concerning development for taxpayers, the Chancellor has refused to rule out increases to income tax, VAT, or National Insurance as she seeks to balance the nation's books against a backdrop of stalled economic momentum.
