UK economy likely to be 6% smaller at Easter than previously forecast

Resolution Foundation says lockdowns and tier 4 restrictions will lead to depressed growth in 2021

The fresh wave of coronavirus restrictions could lead to the economy being 6% smaller by Easter than official forecasters had predicted just last month, one of the UK's major economic thinktanks has warned.

The Resolution Foundation said the national lockdowns in Scotland and Wales and the tier 4 restrictions imposed in much of England would lead to depressed growth until Easter, and lead to 4.3% growth in 2021 compared with the 5.5% forecast by the Office for Budget Responsibility (OBR).