UK economy contracted in the fourth quarter of 2023 for the second consecutive period. High interest rates and inflation have put pressure on the economy of households and businesses.
The recession was caused mainly by poor business results in December, in the middle of the Christmas season. Inflation in the United Kingdom stands at 4%, still double the Bank of England's target, but has fallen from the 11% reached in October 2022. Labor currently has a clear lead in the polls over the Conservatives, in power for about 14 years.