UK economy slows between July and September

The UK’s economy grew by 0.1% between July and September, according to the latest official figures.

Growth was lower than expected and the Office for National Statistics said activity was subdued across most industries during the three months.

Labour made boosting economic growth its top priority when it came into power but Chancellor Rachel Reeves said she was “not satisfied” with these latest figures which cover the first three months of the new government.

A number of economists said that uncertainty about what measures would be included in October’s Budget had weighed on growth.

This was particularly evident in September when the economy contracted by 0.1%.

Ben Jones, lead economist at the CBI business group, said firms had widely reported “a slowdown in decision making” prior to the Budget. He added that once it had been announced it had “set off warning lights for business”.

The government is facing a backlash by some businesses who have criticised the tax rises in the Budget.

The increase in National Insurance Contributions for firms together with other measures “is expected to trigger a more cautious approach to pay, hiring and investment”, Mr Jones said.