Economy

The UK economy faces a “massive hit” in 2023 because Rishi Sunak’s government is refusing point blank to negotiate with unions over ending public sector strikes, shadow chancellor Rachel Reeves has told the Observer in a marked escalation of rhetoric from Labour.This week will see five consecutive days of shutdowns on the rail system but Reeves says ministers appear to have “given up” on governing altogether and are instead seeking confrontation with the unions for political reasons. “The Tories’ approach is increasingly reckless in allowing these strikes to continue with...

A near-inevitable global recession sparked by a lengthening war in Europe’s frozen east; an energy crisis coupled with soaring inflation; Covid-19 finally running rampant in China – predictions for 2023 are grim. Still, there are reasons to be hopeful. That same energy crisis has spurred an unprecedented demand for renewables, which are expected to boom, while in Brazil, a new president has sworn to protect the Amazon. Repressive regimes, meanwhile, will be nervously looking at Iran, where hardline clerics are locked in a struggle with a formidable pro-democracy uprising that...

A few weeks ago, a friend reminded me of that old song, All My Trials: “If living were a thing that money could buy / The rich would live and the poor would die.” Which, of course, they do. Just how many unnecessary deaths will result from the lethal combination of extreme cold and soaring energy costs this winter remains to be seen, but no one needs an economics degree to work out that the figures will be weighted towards those who lack choices and resources. It is not just...

The UK is beginning 2023 on the brink of recession as households and businesses come under intense pressure from the cost of living crisis, with inflation at the highest rates since the early 1980s.The Bank of England has said the country is on track for a prolonged recession, as households struggle to keep up with the soaring costs of food, energy and other basic essentials. Here are five charts for the UK’s economic prospects in 2023.InflationUK inflation graphicBritain entered 2022 with inflation at just over 5% as the aftershock of...