Goldman Sachs slashed its growth predictions for the United Kingdom and said a recession would set in by the end of the year due to the impact of rising inflation on consumers’ disposable earnings.
Goldman predicts that the recession will start in the fourth quarter of 2022, and that the economy would shrink by 0.6% in 2023.
Britain will raise its cap on consumer energy bills by approximately 80% to an average £3,549 from £1,971 a year, according to the announcement of an energy regulator last Friday.
The new price cap will indicate how much suppliers can charge households for their combined electricity and gas bill in England, Scotland and Wales. Nevertheless, the price will be recalculated by Britain’s independent energy regulator Ofgem, which will set it according to how much energy companies have to pay for the electricity and gas they supply to customers.
It will take effect on October 1, 2022, which will determine the amount 24 million households have to pay for their energy usage for the next three months.
