UK recession – live: Reeves says Britain trapped in cycle of ‘decline’ as Sunak’s economy pledge ‘in tatters’
Figures confirm 0.3 per cent decline in bigger-than-expected year-end contraction
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Your support makes all the difference.Britain is trapped in a cycle of decline and Rishi Sunak’s pledges to boost the economy are now “in tatters”, Labour’s shadow chancellor Rachel Reeves has warned, as the UK fell into recession.
The Office for National Statistics (ONS) revealed on Thursday a 0.3 per cent decline in gross domestic product (GDP) between October and December 2023.
The gloomy official figures mean the economy entered a technical recession, as defined by two or more quarters in a row of falling GDP, for the first time since amid the pandemic in the first half of 2020.
The news deals a blow to the prime minister, who has promised to grow the economy as one of his five priorities, especially after most economists were only forecasting a 0.1 per cent decline in GDP.
In comments Labour suggested were “out of touch”, chancellor Jeremy Hunt said low economic growth is “not a surprise”, but added that the UK must “stick to the plan – cutting taxes on work and business to build a stronger economy” despite tough times for many families.
Jeremy Hunt insists Tory party 'must stick to our guns' as UK falls into recession
Tory election leaflet claiming economy is growing ‘delivered on day of recession data’
Voters have received an election leaflet boasting about the economy growin under the Conservatives on the day it emerged the UK had slipped into a recession, according to the Daily Mirror.
Flyers for justice secretary Alex Chalk were delivered to residents in Cheltenham, telling them to “take a look at the facts: we're making progress and strengthening our economy”.
It adds: “Economy GROWING. Official GDP data shows that the UK economy has grown more than Germany, France and Italy when recovering from the pandemic. That means more jobs, more investment and a better standard of living.”
From mortgages to childcare: What does the recession actually mean for you?
For those wondering what impact the impact of entering a recession could be, Abi Jackson looks at the latest economic data from the perspective of childcare, driving, food prices and more in this explainer:
From mortgages to childcare: What does the recession actually mean for you?
With households already feeling the squeeze, what impact will the latest recession news have?
James Moore | The ‘Rishession’ could not have come at a worse time for Sunak
In his latest column, The Independent’s chief business commentator James Moore writes:
Economists spent much of last year discussing the dreaded R-word, and whether the UK could avoid recession. Now we have the answer: it could not.
But how much does this “short, technical recession” really matter? Andrew Bailey, the governor of the Bank of England got in early, and for days has been playing down its significance ... Of course, Bailey has skin in the game here. The Bank’s rate setting Monetary Policy Committee, on which he serves, is facing pressure to reduce interest rates. Small businesses, in particular, are screaming.
Politically, it is more significant still. This could not have come at a worse time for Rishi Sunak, with an election looming ever larger. His opponents will seek to pin the blame for the downturn on him – it’s already been branded the ‘Rishession’… – and use it as a stick to beat the Tories’ record on the economy.
The latter is always a key battleground. In past epochs, it has been seen as a Tory strength. This time, not so much.
Should we be worried by the ‘Rishession’… and is Brexit to blame?
Leaving the EU has taken 5 per cent out of the UK’s GDP, created a permanent headwind preventing the economy from recovering – and laid waste to the prime minister’s reputation for careful fiscal stewardship, says James Moore
More than three million households in fuel poverty in 2023, figures show
Some 3.17 million low income households were struggling to pay their energy bills to heat draughty homes in 2023, official figures show.
In England, official statistics consider a household to be in fuel poverty if their home has a poor energy efficiency rating of band D or below and their disposable income after housing and fuel costs is below the poverty line.
The data from the Department for Energy Security and Net Zero shows 13 per cent of households in England were in fuel poverty last year, largely unchanged from 13.1 per cent in 2022.
The figure would have been more than 3.5m households in fuel poverty without government support including energy bill payments and the cost-of-living income payments given to people on low incomes, the data showed.
The data also reveals well over a third of households (36.4 per cent) or some 8.91 million were forced to spend more than 10 per cent of their income, after housing costs, on domestic energy bills, up from 6.66 million in 2022.
Emily Beament has the full report:
More than three million households in fuel poverty in 2023, figures show
Data reveals 13% of English households struggled with energy bills last year.
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