That’s the latest forecast from the British Chambers of Commerce (BCC), which said it expects the UK economy to record three consecutive quarters of contraction – the definition of a recession – this year. However, unlike the Bank of England, the BCC expects the economy to grow in 2023, albeit at a very low 0.2%, with a slight increase to 1% in 2024. The forecast also included unemployment at 3.8% this year before rising to 4.1% next year and 2024. Inflation is expected to peak at 14% in the fourth quarter of this year, falling to 5% by the end of 2023 and further to the Bank of England’s target of 2% by the last quarter of 2024. Alex Veitch, director of policy at the British Chambers of Commerce, said: “Extreme inflationary pressures already in place are likely to increase as we head towards Christmas, with the UK economy already considered to be in recession. “Dealing with these pressures must be at the top of the new prime minister’s inbox when he takes office next week.” Read more: August food prices rise at fastest pace since 2008 Energy bills soar for millions as price cap rises to £3,549 Explained: Everything you need to know about higher bills The UK will find out on September 5 whether the next Prime Minister will be Liz Truss or Rishi Sunak, with Mrs Truss coming first. Mr Veitch said: “Action is needed now and the BCC has produced a comprehensive plan for the Government to provide vital support to businesses. “Along with tax and labor measures, the BCC’s business support plan includes key issues to help businesses with rising energy costs. “These include COVID-19 support with the introduction of a government emergency energy grant, a temporary reduction in VAT on energy bills to 5% to reduce costs for businesses and increased regulation of the energy market for businesses by Ofgem. “Through our extensive research and forecasting, we know the problems businesses are facing right now. Time is running out fast, the government must do what it takes to protect businesses, livelihoods and jobs. “
