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Recession deepens as economy shrinks further

By Channel 4 News

Updated on 24 July 2009

The road to recovery just got steeper as figures showed the British economy declined by 0.8 per cent over the last three months, far more than expected.

UK high street (Credit: Getty images)

At least it was an improvement on the first quarter of the year, which was the worst such slump for 50 years, but experts were hoping for much better news.

Labour's deputy leader Harriet Harman told Channel 4 News plans to put VAT back up again in January were now 'open for review'.

In a statement, the Treasury later flatly denied that, insisting tax was a matter for the chancellor.


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