Close to 250,000 people could lose their jobs by mid-2027 as the UK economy teeters on the edge of recession, battered by surging energy costs and shattered supply chains tied to the Iran conflict, according to a report published on Sunday by the EY Item Club.
The forecasting group, which uses the Treasury's own model of the British economy, said GDP growth will halve to 0.7 per cent in 2026, down from 1.4 per cent last year. The economy is expected to flatline across the second and third quarters, bringing Britain to the edge of a technical recession, defined as two consecutive quarters of falling output, Sky News reported.
