UK Faces Recession Risk as Iran War Threatens Growth and Inflation

The UK risks finding itself on the brink of recession as a result of the Iran war, a leading economics think tank has warned, as the potential damage to Rachel Reeves’ fiscal headroom and the threat of interest rates hikes has been laid bare in a new report. In what will come as dire reading for Rachel Reeves’ team in the Treasury, the National Institute of Economic and Social Research (Niesr) has said the UK economy will suffer a hit to growth amounting to at least 0.5 percentage points this year due to the Iran war. The…