The possibility of even bigger increases in the Ofgem utility price cap early next year means that the economy is facing down the barrel of a fairly deep recession. The depth of the recession ultimately depends on the response of the government. We think it needs to step up and demonstrate that it is willing to absorb a lot of the hit to real national income generated by higher wholesale gas prices and to protect those in need. We’re expecting a £30bn support package, but even that may not prevent a deeper recession than we currently expect.
Will the UK’s next Prime Minister be able to turn around the country’s economic fortunes? Find out what our economists think in our special Drop-In on Monday, 5th September. Register here.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services