UK economy shrank for first time since 2021 Covid-19 lockdown: Survey

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LONDON - The British economy probably shrank for the first time since the nation was in a Covid-19 lockdown at the start of 2021, adding to pressure for action from the contenders vying to take over

as prime minister.

Ms Liz Truss and Mr Rishi Sunak, who are competing in the race set to conclude in September, spent the weekend promoting their ideas to help.inflation will accelerate past a 40-year high to more than 13 per cent this year,Former Prime Minister Gordon Brown and the BOE's former Chief Economist Charlie Bean this weekend added their voices pushing for an aid package that would help those hardest hit.

The remarks and the outlook for rising natural gas prices adding to the pressure on Ms Truss and Mr Sunak to explain what they would do to revive the economy.More On This TopicMr Sunak, the former chancellor of the exchequer, says those measures would take too long to implement and wouldn't help enough of those most in need.

The BOE warned last week that Britain probably will enter recession in the fourth quarter of this year and keep shrinking for the whole of next year.Starting in October, utilities firms will be allowed to charge £4,00 a year for the average power and gas bill, the highest level ever and almost four times the level of a year ago.

 

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