A cyber attack on Jaguar Land Rover contributed to slower UK economic growth, putting more pressure on the Chancellor to take firm action in her Budget.
Gross domestic product (GDP) is estimated to have increased by 0.1% in Quarter 3 (July to Sept), compared with growth of 0.3% in Quarter 2 (Apr to June) 2025, official data published today showed.
Experts said the figures will show the country is “officially on life support” and they “pile even more pressure on the government”.
Nicholas Hyett, investment manager at Wealth Club, said: “A shrinking economy is not what any Chancellor wants days before a Budget.
“However, in this case it’s the cyberattack on Jaguar Land River that has slammed the brakes on UK economic growth, and without it economic activity would be showing a modest pick up.
“The massive knock on effects of events at a single company shows how vulnerable the UK economy is at the moment. Not only are large companies at risk from increasing cyberattacks, but the economy as a whole is reliant on a few central employers whose fortunes ripple out across the entire country.
“Large national champions are great – but they need to form part of a diverse economic ecosystem and today’s numbers are an excellent example of why the government should be looking hard at supporting small businesses in particular in the Budget.
“Small companies are any country’s economic engine, and they have the added advantage of not tripping the entire economy when things go wrong.”
Growth in the latest quarter was driven by increases of 0.2% in services and 0.1% in construction, while the production sector fell by 0.5%.
GDP per head is estimated to have shown no growth in the latest quarter and is up 0.8% compared with the same quarter a year ago.
Liz McKeown, director of economic statistics at the Office for National Statistics, said: “Across the quarter as a whole manufacturing drove the weakness in production.
“There was a particularly marked fall in car production in September, reflecting the impact of a cyber incident, as well as a decline in the often-erratic pharmaceutical industry.
“Services were the main contributor to growth in the latest quarter, with business rental and leasing, live events and retail performing well, partially offset by falls in R&D and hair and beauty salons.”
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