UK economy faces hardest hit of G7 from Iran war says IMF as growth forecast cut

The UK Government has been urged to act to cut electricty bills for consumers (Danny Lawson/PA) -

The UK has suffered the sharpest cut to growth forecasts of the largest global economies after the conflict in the Middle East raised the prospect of a “major energy crisis”, according to the International Monetary Fund (IMF).

The influential financial body said the spike in energy prices caused by the war will help push UK inflation towards 4% – double the Bank of England’s inflation target – and contribute to higher costs for households.