Editing Economy of the United Kingdom (section)

===2020 to present===
{{See also|Economic impact of the COVID-19 pandemic in the United Kingdom|2021–present United Kingdom cost of living crisis}}
In March 2020, in response to the [[COVID-19 pandemic in the United Kingdom|COVID-19 pandemic]], a temporary ban was imposed on non-essential business and travel in the UK. The BoE cut the interest rate to 0.1%.<ref>{{Cite news|url=https://www.bbc.co.uk/news/business-51962982|title = Coronavirus: UK interest rates cut to lowest level ever|work = BBC News|date = 19 March 2020}}</ref> Economic growth had been weak before the crisis, with zero growth in Q4 2019.<ref>{{cite web|url=https://www.ons.gov.uk/economy/grossdomesticproductgdp/timeseries/ihyq|title=Gross Domestic Product: Quarter on Quarter growth: CVM SA %|website=Office for National Statistics|date=31 March 2020|access-date=10 May 2020}}</ref> By May, 23% of the British workforce was furloughed (temporarily laid off). Government schemes were launched to help affected workers.<ref>{{cite news|url=https://www.theguardian.com/business/2020/may/04/over-a-fifth-of-british-employees-furloughed-in-last-fortnight|title=Nearly a quarter of British employees furloughed in last fortnight|first=Larry|last=Elliott|date=4 May 2020|access-date=11 May 2020|website=The Guardian}}</ref> In the first half of 2020, GDP shrank by 22.6%,<ref>{{cite news|url=https://www.theguardian.com/business/2020/aug/12/uk-economy-covid-19-plunges-into-deepest-slump-in-history|date=12 August 2020|website=The Guardian|title=Covid-19: UK economy plunges into deepest recession since records began|first=Richard|last=Partington}}</ref> the deepest recession in UK history and worse than any other [[G7]] or European country.<ref>{{cite news|url=https://www.ft.com/content/c8b172e2-8f70-4118-9e81-423e9a4b6839 |archive-url=https://ghostarchive.org/archive/20221210/https://www.ft.com/content/c8b172e2-8f70-4118-9e81-423e9a4b6839 |archive-date=10 December 2022 |url-access=subscription |url-status=live|title=UK economy suffers worst slump in Europe in second quarter|date=12 August 2020|first=Delphine|last=Strauss|website=Financial Times}}</ref> During 2020 the BoE purchased £450 billion of [[government bonds]], taking the amount of quantitative easing since the start of the Great Recession to £895 billion.<ref>{{cite web|url=https://www.bankofengland.co.uk/monetary-policy/quantitative-easing|website=Bank of England|title=Quantitative Easing|access-date=16 April 2020}}</ref> Overall, GDP shrank by 9.9% in 2020, making it the worst contraction since the [[Great Frost]] paralysed the economy in 1709.<ref>{{cite news|url=https://www.ft.com/content/96e19afd-88b3-4e8d-bc3e-a72bd1f60d3c |archive-url=https://ghostarchive.org/archive/20221210/https://www.ft.com/content/96e19afd-88b3-4e8d-bc3e-a72bd1f60d3c |archive-date=10 December 2022 |url-access=subscription|title=UK suffers biggest drop in economic output in 300 years|date=12 February 2021|first1=Valentina|last1=Romei|first2=Chris|last2=Giles}}</ref>

In 2021 consumer price inflation (CPI) began rising sharply due to higher energy and transport costs.<ref>{{cite web|url=https://commonslibrary.parliament.uk/economic-update-economy-was-back-to-pre-pandemic-level-before-omicron/|title=Economic update: Economy was back to pre-pandemic level before Omicron|date=25 January 2022|first=Matt|last=Keep|website=House of Commons Library}}</ref> With annual inflation approaching 11%, the BoE gradually increased the base rate to 2.25% during the first nine months of 2022.<ref>{{cite news|url=https://www.theguardian.com/business/2022/sep/22/bank-of-england-interest-rate-rise-latest|title=UK in recession, says Bank of England as it raises interest rates to 2.25%|first=Richard|last=Partington|work=The Guardian|date=22 September 2022}}</ref> The UK was not alone: global inflation rates were the highest in 40 years owing to the pandemic and [[Russia's invasion of Ukraine]],<ref>{{cite news|url=https://www.ft.com/content/48d674a8-ae51-4f75-909c-0e5b6e38475c |archive-url=https://ghostarchive.org/archive/20221210/https://www.ft.com/content/48d674a8-ae51-4f75-909c-0e5b6e38475c |archive-date=10 December 2022 |url-access=subscription|title=Global economic warning lights are flashing red|author=The Editorial Board|work=Financial Times|date=16 October 2022}}</ref> though {{as of|September 2022|lc=on}}, the country had the highest domestic electricity prices and amongst the highest gas prices in Europe, contributing to [[2021–present United Kingdom cost of living crisis|a cost of living crisis]].<ref>{{cite news|url=https://www.ft.com/content/57c66a89-b046-4c3e-a8aa-d9099bd4da20|title=How do household energy bills compare across Europe?|first1=Alan|last1=Smith|first2=David|last2=Sheppard|work=Financial Times|date=7 September 2022|accessdate=22 December 2022}}</ref> In February 2022 the BoE began [[quantitative tightening]] (a reversal of QE) by not renewing mature government bonds and in November started offloading bonds to private investors,<ref>{{cite news|url=https://www.ft.com/content/64e5dcdd-42a8-4013-a3bd-75a62cf8e6dc |archive-url=https://ghostarchive.org/archive/20221210/https://www.ft.com/content/64e5dcdd-42a8-4013-a3bd-75a62cf8e6dc |archive-date=10 December 2022 |url-access=subscription|title=Bank of England begins selling bonds as it unwinds QE programme|first=Tommy|last=Stubbington|date=1 November 2022|work=Financial Times}}</ref> signalling the end to an era of easy borrowing.<ref>{{cite news|url=https://www.bbc.co.uk/news/business-63474176|title=Bank makes history as it reverses quantitative easing|first=Ben|last=King|date=1 November 2022|work=BBC News}}</ref><ref>{{cite news|url=https://www.theguardian.com/business/2022/nov/01/bank-of-england-begins-selling-government-bonds|title=Bank of England begins selling government bonds|date=1 November 2022|work=The Guardian}}</ref> In October 2022 year-on-year CPI was at 11.1%, the worst for 41 years, food price inflation was 16.2%, gas prices 130% and electricity 66%. 

In August 2023, the [[Office for National Statistics|ONS]] revised its analysis of Britain's economic performance and said that Britain's GDP had surpassed its pre-COVID-19 size in the final quarter of 2021, a much earlier recovery from the pandemic than previously estimated and ahead of other big European countries. The British economy was 0.6% larger in the fourth quarter of 2021 than in the final quarter of 2019, compared with an earlier estimate that it was 1.2% smaller.<ref>{{Cite news |last=Milliken |first=David |date=1 September 2023 |title=UK economy surpassed pre-COVID size in late 2021, new data shows |language=en |work=Reuters |url=https://www.reuters.com/world/uk/uk-statistics-office-revises-up-strength-post-covid-bounce-back-2023-09-01/ |access-date=2 September 2023}}</ref> The new Labour government elected in summer 2024 implemented the most significant enhancement of employment regulations in a generation. This included an increase in minimum wages and a wide array of rights.<ref>{{Cite web |date=2024-10-14 |title=Was Starmer's investment summit a success? |url=https://www.bbc.co.uk/news/articles/cvg3j30mly4o |access-date=2024-11-02 |website=BBC News |language=en-GB}}</ref><ref>{{Cite web |date=2024-10-10 |title=Government unveils significant reforms to employment rights |url=https://www.gov.uk/government/news/government-unveils-most-significant-reforms-to-employment-rights |access-date=2024-11-02 |website=GOV.UK |language=en}}</ref>