Hunt says UK in recession as economy set to shrink next year

The authorities has acknowledged the UK is already successful a recession aft its autarkic forecaster predicted that the system was acceptable to shrink adjacent year.

The Office for Budget Responsibility (OBR) says higher vigor prices driven by the warfare successful Ukraine are mostly to blasted for the expected downturn.

It besides believes the state volition not commencement increasing again until 2024.

It comes arsenic the chancellor lays retired his plans to get the system backmost connected track.

Delivering his Autumn Statement to Parliament, Jeremy Hunt said "families, pensioners, businesses, teachers, nurses and galore others are disquieted astir the future".

But helium said the authorities would instrumentality "difficult decisions" to tackle ostentation and promised his program - which has been vetted by the OBR - would pb to a "shallower downturn".

The surging outgo of surviving is squeezing household budgets, with energy, nutrient and substance bills each overmuch higher than they were past year.

The OBR says that wide this year, the system is inactive forecast to turn by 4.2%.

But it said it would shrink by 1.4% adjacent year, earlier rising by 1.3%, 2.6%, and 2.7% successful the pursuing 3 years.

A recession is defined arsenic erstwhile a country's system shrinks for 2 three-month periods - oregon quarters - successful a row.

Typically during a recession, companies marque little money, wage falls and unemployment rises. This means the authorities receives little wealth successful taxation to usage connected nationalist services.