The UK’s economic slowdown gathered further momentum during the third quarter of the year with growth of just 0.1%, according to an early official estimate that makes for horrific reading for the chancellor.

The Office for National Statistics (ONS) reported a surprise contraction for output during September of -0.1%.

The figures for July-September followed on the back of a downwardly revised 0.2% growth performance over the previous three months and the 0.7% expansion achieved between January and March.

The encouraging start to 2025 was soon followed by the worst of Donald Trump’s trade war salvoes and the implementation of budget measures that placed employers on the hook for £25bn of extra taxes.

Each has been blamed by economists since for pushing up inflation and harming investment and employment.

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