The UK economy shrank by more than first thought in the three months to September this year. The contraction was 0.3 percent as opposed to the original reported figure of 0.2 percent, according to the Office for National Statistics (ONS).

A recession is forecast for the UK in the last three months of 2023 as soaring prices take their toll. A recession is a reduction in the economy for two consecutive quarters of the year – or six months.

It's an environment where companies have less income, unemployment goes up and salaries come under pressure. All this in turn reduces tax revenues and public spending.

READ MORE

The Secret Betrayal: China's WWII sailors

Why are UK nurses on strike?

Austria's Krampus parades too violent to insure

The ONS says household incomes are falling, manufacturing is weaker, and household spending is now falling for the first time since the lockdown in 2021. GDP is now estimated to be 0.8 percent lower than before the COVID-19 pandemic.

A survey by the British Chamber of Commerce (BCC) has shown that over three-quarters of small- and medium-sized firms in Britain have found their businesses hampered by the post-Brexit trade deal and new restrictions on operating within the European Union (EU) market.

The BCC has now lobbied the government with five urgent recommendations for enhancing the agreement with the EU.

Over half of the BCC member companies surveyed said they struggled with new rules for exporting goods, and just under half reported issues trading in different kinds of services.

The overall majority said that the new rules had not helped them expand or grow.

The member companies pointed to difficulties with EU rules on VAT, inconsistent application of customs rules and new limits on business travel. British citizens no longer have the right to unrestricted travel throughout the EU.

It's nearly two years since the Trade and Cooperation Agreement was first agreed. It is due for review in 2026 but many of the BCC members want the government to renegotiate way in advance.

On regulations, two-thirds of members say they still feel more comfortable with the European Union's CE mark, that signifies product quality, rather than the UK's post-Brexit equivalent, the UK Conformity Assessed mark.