The UK economy shrank by 0.1% in March as consumers slashed their spending as the price of energy rose. Even though the price cap had not yet been raised.

The data is seen as a prelude to a far bigger fall when data for April is released. Chancellor of the Exchequer Rishi Sunak confirmed that he has always said that he is ready to support households.

While not strictly true, this comment will be welcomed in households across the country that are struggling to pay their bills as the level of disposable income continues to fall. Sunak went on to say that he is not attracted to the idea of windfall taxes on energy companies, since it is generally accepted that all taxes eventually find their way back to the individual.

This was true of a similar tax on banking profits a few years ago which resulted in banks starting to charge fees on almost every service they provide, which reduced the net effectiveness of tax.

MPC member and Deputy Governor Dave Ramsden confirmed yesterday that the Bank of England will be forced to continue to hike rates as CPI risk remains to the upside.

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