UK economy shrinks by 0.6 per cent as Britain heads for winter recession

  • August 12, 2022
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Nadhim Zahawi, the new chancellor of the exchequer, has called for a review of the UK’s corporate tax policy in a clear hint that a rise from 19p to 25p due next year could be reduced or scrapped.

The UK economy contracted by 0.6 in June and shrank 0.1 per cent between April and June, compared to growth of 0.8 per cent in the previous three months, the Office for National Statistics said this morning.

Commenting on the gross domestic product (GDP) figures that showed a 0.1 per cent contraction in the second quarter of the year, Office for National Statistics director of economic statistics Darren Morgan said: “With May’s growth revised down a little and June showing a notable fall, overall the economy shrank slightly in the second quarter.”

He added: “Health was the biggest reason the economy contracted as both the test and trace and vaccine programmes were wound down, while many retailers also had a tough quarter.

“These were partially offset by growth in hotels, bars, hairdressers and outdoor events across the quarter, partly as a result of people celebrating the Platinum Jubilee.”

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UK economy shrinks by 0.6 per cent as Britain heads for winter recession