London: The UK economy slowed in the third quarter of the year, as higher taxes put pressure on household incomes and savings, official figures have shown. Data from the Office for National Statistics (ONS) showed that the GDP grew by just 0.1%, marking a clear slowdown compared with the second quarter.

According to Qatar News Agency, the ONS revealed that the household saving ratio fell by 0.7 percentage points to 9.5%, its lowest level in more than a year. The decline was attributed to a fall in real household incomes, as inflation and tax increases outpaced income growth.

Household consumption, however, rose by 0.3% compared with the previous quarter, recording its fastest quarterly increase this year. UK Chancellor Rachel Reeves raised taxes in her first budget for 2024, targeting certain forms of income, with business owners bearing much of the burden.

Britain recorded the strongest growth among the Group of Seven (G7) advanced economies in the first half of 2025, alongside Japan. However, growth has since slowed sharply amid uncertainty over potential further tax rises announced in Reeves' second budget on November 26. Last week, the Bank of England said it expects no growth in GDP in the final quarter of the year.