News
  • Login
  • Home
  • News
  • Sport
  • Worklife
  • Travel
  • Reel
  • Future
  • More
Monday, January 12, 2026
No Result
View All Result

NEWS

3 °c
London
8 ° Wed
9 ° Thu
11 ° Fri
13 ° Sat
  • Home
  • Video
  • World
    • All
    • Africa
    • Asia
    • Australia
    • Europe
    • Latin America
    • Middle East
    • US & Canada

    One dead and 300 buildings destroyed in Australia bushfires

    Thousands of tourists stranded in Lapland as cold grounds flights

    The Ugandan rebel-turned-president who is seeking a seventh term

    Meta blocks 550,000 accounts under new law

    Owner of Swiss ski resort bar held in custody after deadly New Year’s Eve fire

    BBC reports from outside ‘El Helicoide’ prison

    Iran warns it will retaliate if US attacks, as hundreds killed in protests

    More federal agents to be sent to Minnesota after shooting, Trump administration says

    Australia to deport British man over alleged neo-Nazi links

  • UK
    • All
    • England
    • N. Ireland
    • Politics
    • Scotland
    • Wales

    Why the NHS still wastes billions on patients who shouldn’t be in hospital

    ‘Clean sheet mentality’ key in Rohl’s Rangers revival

    Cheetahs v Ulster: Ulster awarded maximum points after Challenge Cup game called off in the Netherlands

    UK can legally stop shadow fleet tankers, ministers believe

    Four killed and five injured in head-on crash in Bolton

    My three-hour university commute is worth the £7,000 saving on halls

    Can Glasgow Warriors break new ground in Champions Cup?

    Seven-try Pau dent Scarlets' knockout hopes

    Thousands in NI being offered testing for Celtic curse

  • Business
    • All
    • Companies
    • Connected World
    • Economy
    • Entrepreneurship
    • Global Trade
    • Technology of Business

    Why luxury carmakers are now building glitzy skyscrapers

    US Fed Chair Jerome Powell under criminal investigation

    The real impact of roadworks

    AI robots and smart lenses among Cambridge Science Park plans for 2026

    Debt charities report January spike in calls as worries mount

    Next raises profit forecast after strong Christmas sales

    US job creation in 2025 slows to weakest since Covid

    Government to water down business rate rise for pubs

    We were fired, and we’re owning it – here’s how to find a new job that works for you

  • Tech
  • Entertainment & Arts

    Dancers say Lizzo ‘needs to be held accountable’ over harassment claims

    Freddie Mercury: Contents of former home being sold at auction

    Harry Potter and the Cursed Child marks seven years in West End

    Sinéad O’Connor: In her own words

    Tom Jones: Neighbour surprised to find singer in flat below

    BBC presenter: What is the evidence?

    Watch: The latest on BBC presenter story… in under a minute

    Watch: George Alagiah’s extraordinary career

    BBC News presenter pays tribute to ‘much loved’ colleague George Alagiah

    Excited filmgoers: 'Barbie is everything'

  • Science
  • Health
  • In Pictures
  • Reality Check
  • Have your say
  • More
    • Newsbeat
    • Long Reads

NEWS

No Result
View All Result
Home Business Global Trade

UK officially in recession for first time in 11 years

August 22, 2022
in Global Trade
12 min read
250 3
0
491
SHARES
1.4k
VIEWS
Share on FacebookShare on Twitter


By Szu Ping Chan & Robert Plummer
Business reporters, BBC News

Media caption,

Rishi Sunak: “We’re grappling with something unprecedented”

The UK economy suffered its biggest slump on record between April and June as coronavirus lockdown measures pushed the country officially into recession.

The economy shrank 20.4% compared with the first three months of the year.

Household spending plunged as shops were ordered to close, while factory and construction output also fell.

This pushed the UK into its first technical recession – defined as two consecutive quarters of economic decline – since 2009.

Chancellor Rishi Sunak told the BBC that the government was “grappling with something that is unprecedented” and that it was “a very difficult and uncertain time”.

But shadow chancellor Anneliese Dodds blamed Prime Minister Boris Johnson for the scale of the economic decline, saying: “A downturn was inevitable after lockdown – but Johnson’s jobs crisis wasn’t.”

How are ordinary people being affected?

Kate Treglown, 44, of Walthamstow in east London, is currently out of work as a result of the coronavirus crisis. She was made redundant from her advertising job at the end of July after being on furlough.

“I worked for 16-and-a-half years for an advertising agency that promoted live events. The work totally dried up in May,” she told the BBC.

Image source, Kate Treglown

Kate says she feels “stuck in limbo” – keen to try something new, but unsure of when her children- who she has been home schooling – will return to school.

“There is work. There are jobs available. But when I look on LinkedIn, every single job has hundreds of applications, so competition is very stiff,” she says.

“I feel women are really carrying the burden of this pandemic with regards to the childcare, whether working or not. It’s made me feel quite depressed at times.

“My redundancy money is only going to last so long and I’m scared of what the future holds for us at the moment.”

Is there any sign of things getting better?

The Office for National Statistics (ONS) said the economy bounced back in June as government restrictions on movement started to ease.

On a month-on-month basis, the economy grew by 8.7% in June, after growth of 1.8% in May.

But Jonathan Athow, deputy national statistician for economic statistics, said: “Despite this, gross domestic product (GDP) in June still remains a sixth below its level in February, before the virus struck.”

Which parts of the economy have suffered most?

The ONS said the collapse in output was driven by the closure of shops, hotels, restaurants, schools and car repair shops.

The services sector, which powers four-fifths of the economy, suffered the biggest quarterly decline on record.

Media caption,

Factory shutdowns also resulted in the slowest car production since 1954.

The economic decline was concentrated in April, at the height of lockdown.

What is the government doing about it?

But in a BBC interview on Wednesday, Mr Sunak did not waver on ending the government’s furlough scheme of job subsidies, which is winding down and is due to end entirely after October.

“I think most people would agree that that’s not something that is sustainable indefinitely,” he told the BBC.

The chancellor said the government should not pretend that “absolutely everybody can and will be able to go back to the job they had” and said there would be support for creating jobs in new areas.

The opposition has been critical of the government’s handling of the economy during the pandemic.

Ms Dodds said: “We’ve already got the worst excess death rate in Europe – now we’re on course for the worst recession too. That’s a tragedy for the British people and it’s happened on Boris Johnson’s watch.”

Referring to the tapering of the furlough scheme, she said the government had “snatched away wage support for businesses that hadn’t even reopened yet”.

How are businesses coping?

Laura Tenison, founder of clothing firm JoJo Maman Bebe, told the BBC that the trading performance of her 90 stores was showing huge variations, with those in urban locations suffering from a lack of office workers and tourists.

“Those like York, Windsor, central London, Reading, Norwich – those ones are absolutely dire, really really awful,” she said.

“I mean, some days we take no money, put it that way. But some of the village stores, the community stores, they’re actually doing better than we anticipated.

“I think we have six stores in the portfolio that actually are trading up on last year.”

Ms Tenison founded her business in 1993, during a recession. “This is my third recession in my relatively long life in retail,” she said.

“We still have to be entrepreneurial,” she added. “We have had to close down some areas of business because of Covid. We’ve had to close our American business, which is just a massive sadness to me.

“Of course, everyone has to look at their overheads, but be creative. Look at those opportunities out there. Recessions bring opportunities.”

What are other people saying?

Business groups urged the government to do more to support the economic recovery.

Alpesh Paleja, an economist at the Confederation of British Industry, said many companies were struggling to pay their bills on time.

He said: “A sustained recovery is by no means assured. The dual threats of a second wave and slow progress over Brexit negotiations are also particularly concerning.”

Media caption,

Anneliese Dodds: The UK has not seen “a big enough bounce back and we really need one”

While more recent data suggest the recovery is gaining traction, the Bank of England does not expect the economy to get back to its pre-pandemic size until the end of next year.

The Office for Budget Responsibility, the government’s official forecaster, expects the recovery to take even longer.

How does the UK compare with other nations?

The UK’s slump is one of the biggest among advanced economies, according to preliminary estimates.

The economy is more than a fifth smaller than it was at the end of last year. This fall is not as bad as the 22.7% decline in Spain, but about twice the size of contractions in Germany and the US.

The chancellor told the BBC that the UK economy had performed worse than its EU counterparts because it was focused on services, hospitality and consumer spending.

“Those kinds of activities comprise a much larger share of our economy than they do for most of our European cousins,” he said.



Source link

Tags: officiallyrecessiontimeyears

Related Posts

The firms giving nature a stake in their businesses

July 14, 2023
0

Some companies are giving shares to environmental groups, or putting such advocates on their board. Source link

Californian winemakers are learning firefighting techniques

July 6, 2023
0

Winemakers in the Napa Valley are having to battle wildfires affecting vineyards and wineries. Source link

'We are selling a product that we hope gets discontinued'

May 18, 2023
0

The firms aiming to help eradicate invasive species by making commercial use of them. Source link

  • Australia helicopter collision: Mid-air clash wreckage covers Gold Coast

    522 shares
    Share 209 Tweet 131
  • UK inflation: Supermarkets say price rises will ease soon

    515 shares
    Share 206 Tweet 129
  • Ballyjamesduff: Man dies after hit-and-run in County Cavan

    510 shares
    Share 204 Tweet 128
  • Somalia: Rare access to its US-funded 'lightning commando brigade

    508 shares
    Share 203 Tweet 127
  • Google faces new multi-billion advertising lawsuit

    508 shares
    Share 203 Tweet 127
  • Trending
  • Comments
  • Latest

Australia helicopter collision: Mid-air clash wreckage covers Gold Coast

January 10, 2023

UK inflation: Supermarkets say price rises will ease soon

April 19, 2023

Ballyjamesduff: Man dies after hit-and-run in County Cavan

August 19, 2022

Stranger Things actor Jamie Campbell Bower praised for addiction post

0

NHS to close Tavistock child gender identity clinic

0

Cold sores traced back to kissing in Bronze Age by Cambridge research

0

Trump withdraws US from key climate treaty and dozens of other groups

January 12, 2026

Why the NHS still wastes billions on patients who shouldn’t be in hospital

January 12, 2026

‘Clean sheet mentality’ key in Rohl’s Rangers revival

January 12, 2026

Categories

Science

Trump withdraws US from key climate treaty and dozens of other groups

January 12, 2026
0

US President Donald Trump has withdrawn the US from dozens of international organisations, including many that work to combat...

Read more

Why the NHS still wastes billions on patients who shouldn’t be in hospital

January 12, 2026
News

Copyright © 2020 JBC News Powered by JOOJ.us

Explore the JBC

  • Home
  • News
  • Sport
  • Worklife
  • Travel
  • Reel
  • Future
  • More

Follow Us

  • Home Main
  • Video
  • World
  • Top News
  • Business
  • Sport
  • Tech
  • UK
  • In Pictures
  • Health
  • Reality Check
  • Science
  • Entertainment & Arts
  • Login

Copyright © 2020 JBC News Powered by JOOJ.us

Welcome Back!

Login to your account below

Forgotten Password?

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
News
More Sites

    MORE

  • Home
  • News
  • Sport
  • Worklife
  • Travel
  • Reel
  • Future
  • More
  • News

    JBC News