UK recession concerns are rising sharply after the latest figures revealed a far weaker run of growth and a notable rise in unemployment ahead of the 26 Budget, warns the CEO of a global financial advisory giant.

In London, the FTSE 100 fell over 1% on Friday, underperforming broader European markets. The slide was linked to a surge in UK gilt yields and a weaker pound, following reports that Chancellor Rachel Reeves may abandon planned income-tax hikes in the November 26 autumn Budget.

Britain's economy barely expanded in the third quarter, held back by September's cyber attack on Jaguar Land Rover, according to data on Thursday that underlined the backdrop of slow growth as finance minister Rachel Reeves readies her budget.

Rachel Reeves has blamed a sharper than expected slowdown on a cyber attack that crippled production at Jaguar Land Rover. UK GDP (gross domestic product) rose by 0.1pc in the third quarter of the year, down from the 0.3pc growth recorded in the previous three months, according to the Office for National Statistics (ONS).

If productivity grows more slowly it means overall GDP growth - and overall tax revenues - will be lower than previously expected. The Institute for Fiscal Studies (IFS) think tank has estimated each 0.1 percentage point downgrade in the official productivity growth forecast increases projected government borrowing by £7bn in 2029–30.

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The truth about the UK economy this year is much less exciting. The Bank of England said last week that by the end of 2025 it expected real GDP growth in the year to have been 1.4 per cent, exactly on track to meet the Office for Budget Responsibility’s forecast from March.

Interventionist fiscal policy may have stopped demand from collapsing. But the intervention is so large that politicians are distorting the economy’s allocation of resources. The longer the recession recession continues, the more that three risks—financial, fiscal and allocative—will grow.

As fears of a slowing economy lurk in the background, some businesses are taking notice and bringing back so-called recession specials. Look up the term “recession specials” through Google’s search engine, and the list of results will include entries ...