Lockdown 2.0 will plunge Britain ‘into a double-dip recession’, economists warn – as Boris Johnson ducks meeting with industry chiefs and sends business minister Alok Sharma instead
- PM will not address the annual Confederation of British Industry meeting today
- Business Secretary Alok Sharma will attend on behalf of the government
- It is only the second time in the CBI’s 55 year history that a PM will not attend
- It comes as fragile economy is pushed to brink by second lockdown
A second lockdown will push the economy into the nosedive of a double dip recession, experts warned.
Tighter coronavirus restrictions will cause the nation’s already fragile economy to spiral, with economists forecasting a shrink of up to 8 per cent GDP in the final-quarter of 2020.
It comes as it emerged the Prime Minister will not address the Confederation of British Industry (CBI) meeting for only the second time in its 55 year history.
The annual conference takes place today, 48 hours after the announcement that much of the economy would shut down in a bid to halt the spread of the virus as a second wave engulfs the UK.
Boris Johnson is expected to send Business Secretary Alok Sharma in his place.
Prime Minister Boris Johnson will not address the Confederation of British Industry meeting for only the second time in its 55 year history, instead sending Business Secretary Alok Sharma in his place
Business Secretary Alok Sharma (left) is set to attend the CBI meeting today after the organisation’s president Lord Bilimoria (right) announced the PM would notbe speaking at the meeting
The president of the organisation, Lord Bilimoria, told BBC Radio 4’s Today programme: ‘It is absolutely normal, in the history of the CBI, for the Prime Minister of the day to address the annual conference.
‘To my knowledge this has only not happened once in history.
‘He is not going to be addressing us this morning.
‘However, we are hopeful that at some stage he will engage with us.’
Business leaders are desperate to hear reassurances from government amid rising uncertainty over the future of the economy.
These are said to include a road map out of a second lockdown and assurances about a Brexit deal before the end of the year.
Outgoing CBI boss Carolyn Fairbairn yesterday said a second lockdown was a ‘real body blow’ for the economy.
She added that the next four weeks should be used ‘to really prepare for what might come next’, as salons, gyms and the hospitality industry are set to close their doors once more.
The latest data published by the Office for National Statistics suggests the UK’s V-shaped recovery from the coronavirus crisis is slowing
Economists also added to the warnings and said the national output was likely to contract by between 5 and 8 per cent in the final months of 2020 after recovery seen over the summer.
Howard Archer, chief economic adviser to economic forecaster the EY Item Club, told The Times: ‘There seems little doubt a renewed national lockdown will cause the economy to contract in the fourth quarter — and very possibly by an appreciable amount.’
The warnings come at a time when businesses borrowing it at an all time high and the aviation and travel idustry is on its knees as another travel ban is introduced.
The EY Item Club research also found that net borrowing from banks rose to £43.2bn between January and August from £8.8bn for 2019.
This is a fivefold increase compared to figures from last year.