Today, 13th November 2025, the final economic growth figures before the Budget have been released by the ONS. Economic growth slowed to just 0.1% in the third quarter of the year, July to September, and in September itself, GDP fell by 0.1%, meaning in the final month of figures to be released prior to Rachel Reeves’ Budget on Wednesday 26th November, 2025, the economy was shrinking… We take a look at what the Chancellor has to say, the reasons behind the slow growth in the quarter, and examine what this all means for businesses.
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Recent Economic Growth Figures For 2024/25
Before we look at the most recent figures, let’s compare figures from 2024-2025 so far, direct from the Office for National Statistics:
Let’s take a closer look at the figures for 2025 to see how the economy has been performing this year:
- Q1 2025 (January-March) – Economy grew by 0.7%
- Q2 2025 (April-June) – Economy grew by 0.3%
- Q3 2025 (July-September) – Economy grew by 0.1%
2025 Economic Trend
Given that economic growth started strong at 0.7%, the emerging trend of a slow-growing UK economy in subsequent quarters is both disappointing and worrying for business owners. Add to that the fact that in the month of September, GDP, and therefore the economy as a whole, actually shrunk by 0.1%, you can understand why business owners are waiting with bated breath for the Chancellor’s Autumn Budget to hear just how she plans to turn things around and bring the economic growth the Labour government promised in December 2024.
The Plan for Change document, released in December 2024, stated as plainly as possible that “economic growth is the number one mission of the government”. So far, they’ve technically delivered on that promise – the economy is growing overall – but nowhere near at the rate they, or UK business owners and households, will have hoped for.
Rachel Reeves Reacts
Reacting to the figures in a press conference this morning, Chancellor Rachel Reeves had this to say:
We had the fastest-growing economy in the G7 in the first half of the year, but there’s more to do to build an economy that works for working people…
Whilst acknowledging there’s more to do, Reeves also said: “At my Budget later this month, I will take the fair decisions to build a strong economy that helps us to continue to cut waiting lists, cut the national debt and cut the cost of living.”
Our advice for now? Take in the figures, listen to different analysts and experts over the coming days, but don’t panic. The Autumn Budget will provide more clarity over the plan moving forwards, even if that plan is likely to involve increasing taxes whilst encouraging businesses and households alike to get behind the Chancellor’s plan, and increase activity in the economy to bolster economic growth. It won’t be easy, but with the right plan in place, business owners will certainly be more confident in their economic activities post-budget, if Rachel Reeves can pull it off.
Why Did The Economy Shrink In September?
Of all the news today, the shrinking economy in September will be the biggest red flag for business owners. But there are more specific reasons for this. In particular, the Jaguar Land Rover (JLR) cyber attack which saw the carmaker shut down for more than a month at the end of August, causing huge issues across their entire supply chain, from small independent firms to huge multi-nationals.
This derailed car manufacturing output in the UK to a 70 year low, and caused millions of pounds to be lost for many involved in UK car production. This alone more than explains the dip in GDP in September overall.
Our Expert Business Analysts React
After speaking with our team, it’s clear that businesses don’t need to take any action right now. The huge hit to the economy during the JLR cyber attack likely accounts for all of September’s dip in GDP performance and a good chunk of the quarter’s slow growth overall to boot.
It’s well established by now that one-off hits to a major world player’s economy is unlikely to cause lasting damages, and in fact can be more or less undone in the following quarter as catch-up growth accelerates overall economic growth further. That means the final quarter for 2025, October to December, could see more impressive GDP growth, barring another freak hit like the cyber attack at JLR.
Of course, our experts are also keen to point out that this doesn’t negate the fact that the economy is growing at a much slower rate than businesses and government alike would hope for. For any tricks up the Chancellor’s sleeve to reverse this, though, we’ll have to wait for the Autumn Budget in less than a fortnight.
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