Cyberattack Hits UK Economy: September Slump Poses Budget Challenge

The UK's economy slowed significantly in the third quarter of 2025, with growth at only 0.1% due to a cyberattack on Jaguar Land Rover affecting production. Finance Minister Rachel Reeves prepares her budget amidst sluggish economic conditions, while the Bank of England considers interest rate cuts.

The UK economy nearly stalled in the third quarter of 2025, primarily due to a cyberattack on Jaguar Land Rover in September, according to the Office for National Statistics. The economy grew by a mere 0.1%, falling short of expectations and down from a 0.3% rise in the previous quarter.

Both Reuters-polled economists and the Bank of England had anticipated a 0.2% growth in GDP for the July-September period. The economy's 0.1% contraction in September underscored a disappointing performance, shifting investor bets toward a potential interest rate cut by the Bank of England next month.

Finance Minister Rachel Reeves faces the challenge of managing a tepidly growing economy ahead of her budget on November 26, despite Britain's status as the fastest-growing among the Group of Seven nations earlier this year. The cyberattack on JLR alone cost the economy an estimated 1.9 billion pounds, severely impacting the automotive sector.

(With inputs from agencies.)