“This modest rebound suggests that the economy is still on a downbeat path as eye-watering inflation bites into household incomes and curbs business activity.
“We’re likely to continue flirting with recession throughout much of 2023, as high inflation, tax rises and the lagged effect of rising interest rates shrinks consumer spending power, despite a boost from easing energy costs.
“The Spring Budget could have a significant impact on the UK’s near-term growth prospects. While extending energy support will provide some relief to struggling households, aggressive tax rises would risk eliminating any lingering momentum from the economy.”
ENDS
Notes to editors:
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