Truckers crisis hits economy

THE economic recovery slowed to a crawl in July as the Covid pingdemic and a shortage of lorry drivers wreaked havoc on business.

Output rose by only 0.1 per cent in June, meaning the economy is still 2.1 per cent smaller than pre-pandemic, according to the Office for National Statistics.

The disappointing figures came after Boris Johnson announced a £12billion tax raid designed to ramp up spending on the NHS and social care. Chancellor Rishi Sunak had been relying on the economy roaring back to life to boost tax receipts and prop up spending.

But experts said there was a ‘whiff of stagflation in the air’ – where inflation soars but output stagnates. Paul Dales, of consultancy Capital Economics, said: ‘It’s becoming clearer that product and labour shortages are acting as a brake on the recovery.’