Bank of England raises interest rates as it warns of recession and 10% inflation

Rise to 1% is fourth successive increase and highest level since February 2009

The government is facing calls to launch a fresh package of emergency financial support for households after the Bank of England warned Britain's economy could plunge into recession before the end of the year.

As the nation went to the polls in the local elections, the Bank raised interest rates from 0.75% to 1% to tackle spiralling inflation made worse by Russia's war in Ukraine. With a fresh jump in home energy bills expected in October, it forecast inflation would rise above 10% this year, the highest level since 1982.