Recession threat looms as UK grinds to a halt to mourn Queen

Bank holiday for state funeral could send productivity plummeting at a time when country is struggling for growth

Britain's fragile economy was already teetering on the edge of recession even before the death of Queen Elizabeth II last week. That prospect now looms a lot larger, as businesses cancel events amid the period of national mourning culminating in the bank holiday for the late monarch's funeral.

Economists say high street shops closing their doors or operating reduced hours on Monday, alongside the loss of a full working day, will lead to a sharp fall in output at a time when Britain is struggling for growth momentum amid the cost of living crisis.