“These figures suggest that the UK’s economic fortunes took a notable nosedive in ‘Awful April’ as skyrocketing bill and tax rises, coupled with the chaos over US tariffs, suffocated overall output.
“April’s decline is probably the start of a more sobering period for the UK economy with the damage from spiralling costs and intensifying global uncertainty set to slow growth sharply this quarter, despite elevated government spending.
“Weaker growth is a headache for the Chancellor as it makes generating the revenue government needs to support its sizable spending plans more difficult, increasing the chances of further tax rises in the Autumn Budget.
“Though the door is probably closed on an interest rate cut next week, these downbeat figures increase the likelihood of a policy loosening in August, despite lingering concerns over high inflation.”
ENDS
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