UK growth stalls at 0.1% as vehicle output slump adds pre‑Budget pressure

UK economy grows just 0.1% in quarter to September as car production falls

The Office for National Statistics (ONS) says the UK economy expanded by just 0.1% in the three months to September, in the final national accounts update ahead of next month’s Budget. Momentum weakened further in September, when GDP fell by 0.1% month‑on‑month.

The ONS flagged a sharp reduction in vehicle production as a partial contributor to the slowdown. UK car output hit a 70‑year low in September after a major cyber attack disrupted production at Jaguar Land Rover, denting manufacturing activity during the quarter.

Chancellor Rachel Reeves said the figures show there is "more to do to build an economy that works," stressing the need for sustained action to boost growth and productivity. Her Conservative counterpart argued that fiscal savings will be necessary to create room for future tax cuts.

These weaker-than-expected numbers intensify the challenges facing ministers ahead of the Budget in two weeks. Analysts warn that a combination of stalled growth and manufacturing setbacks will complicate policy choices, forcing a balance between supporting growth and managing the public finances.

What this means: Policymakers will be watching incoming data closely. If the manufacturing slump persists or consumer demand softens further, the government may face difficult trade-offs between spending priorities and tax policy.