New lockdown restrictions will set back economic growth by a year - Capital Economics

Policy response depends on 'severity' of new restrictions

Lauren Mason
clock • 4 min read

A ‘circuit-breaker’ lockdown in October and a 10pm curfew on restaurants and pubs could set the UK’s economic recovery back by a year, according to the latest report from Capital Economics, with a two-week national lockdown alone potentially reducing GDP by 5%.

This comes following chief medical officer Chris Whitty's address to the nation yesterday (21 September), which noted the virus had "turned a corner" and that "speed" and "action" are required to prevent the number of new cases rising exponentially. Now, with Prime Minister Boris Johnson set to announce new measures during a press conference today (22 September), Capital Economics believes the UK's recovery - which has so far been "brisk", having estimated that three-quarters of the 26% plunge in GDP will have been recouped by the end of the month - could begin to "slow in pace". "Of ...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Economics / Markets

Bank of England meets expectations and cuts rates to 4%

Bank of England meets expectations and cuts rates to 4%

Lowest level in two and a half years

Isabel Baxter
clock 07 August 2025 • 4 min read
Think tank warns UK fiscal hole could surpass £50bn by 2030

Think tank warns UK fiscal hole could surpass £50bn by 2030

Government not on track to meet ‘stability rule’

Sorin Dojan
clock 06 August 2025 • 1 min read
Chancellor Khalaf has a plan to make our economy boom

Chancellor Khalaf has a plan to make our economy boom

'So, Sir Keir, if you're reading, I do genuinely hope Rachel is doing okay. And my number's still the same. So, you know, call me'

Laith Khalaf
clock 25 July 2025 • 5 min read