UK recession fears develop as rising inflation set to depart extra Scots struggling

The UK economic system shrank in March as folks started to reign of their spending amid the rising price of residing disaster.

Official figures confirmed the economic system contracted by 0.1 per cent in March after no progress in February – sparking fears the nation might be heading into recession.

Tory-imposed tax rises and rising gas payments have been blamed for customers spending much less.

The Bank of England hiked in rates of interest to a 13-year excessive of 1 per cent final week to attempt to curb inflation and warned the economic system was set to stall within the second quarter.

Alison Thewliss, SNP spokeswoman on the economic system, at this time warned the UK Government “has absolutely no plans to deal with this.”

“Growth is flatlining, and the Bank of England predicts growth is going to flatline for many years.

“That’s actually fairly worrying because the UK Government plan is to develop our method out of this.

“They seem to have no plan to grow the economy – and that should worry all of us, particularly when costs are rising in the shops, when fuel is rising, when energy bills are soaring, and when inflation is set to rise as well.

“The National Institute of Social and Economic Research predicted yesterday that RPI inflation might hit 14-and-a-half per cent subsequent 12 months.

“That’s really quite stark – and the UK Government has absolutely plans to deal with this.”

Chancellor Rishi Sunak stated UK first quarter progress was quicker than the US, Germany and Italy.

But added: “I know these are still anxious times.”

“Our restoration is being disrupted by Putin’s barbaric invasion of Ukraine and different world challenges, however we’re persevering with to assist folks the place we will,” he stated.

The figures confirmed the wind down of the coronavirus check and hint programme weighed on first quarter progress.

In March, the decline was led by a 0.2 per cent fall in output from the all-important companies sector, with consumer-facing companies down 1.8 per cent in an indication of the strain already being felt amongst households.

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