Weakening UK trade puts the brakes on GDP growth

Consumers continue to fuel economic recovery as widening import-export gap proves record drag on growth

The UK economy has slowed after poor overseas trade figures put a record drag on growth, leaving household spending to drive the recovery and casting further doubt on George Osborne's hopes that strong tax receipts will help him hit ambitious budget targets.

Official figures confirming that GDP growth slipped in the third quarter came alongside a warning from a leading credit rating agency that the chancellor's latest package of tax and spending measures left him at risk of missing his goal to run a surplus on the public finances by the end of the decade. Fitch Ratings said the chancellor was heavily reliant on economic growth holding up to balance the books.