Page 35 - Londra Gazete Sayı 1127

6 LondraGazete.com/English Londra Gazete, 13 October 2022

UK on brink of recession

after economy shrinks again

THERE are fears that the UK
could be in recession after the
economy unexpectedly shrank in
August for the first time in two
months.
The drop of 0.3% from July to
August comes after similar tur-
moil earlier in the year, when in
April gross domestic product fell
by 0.3%, compared to a fall of
0.1% in March.
IMF warns rising prices economic growth to flatline – but
Experts had been expecting

will be worse in UK it fell, down from downwardly
revised growth of 0.1% the previ-
ous month, according to the Of-
THE International Monetary 11.3% before the end of the year fice for National Statistics (ONS).
Fund (IMF) has doubled down on in the UK, according to the IMF's The ONS said there has been growth the economy contract- days left now. You have got to get
criticism of the chancellor's mi- latest assessment of the global a continued slowing in three-
ed in the last three months as a this done’, he said.
ni-budget, days after warning it economy. month on three-month growth, whole.
will fuel rising prices. The IMF said it understood the with gross domestic product On Tuesday , the Bank of Eng- ‘Part of the essence of a finan-
The body, which works to sta- government's mini-budget aimed (GDP) falling by 0.3% in the quar- cial stability intervention is that
bilise economic growth, admit- to boost growth, but it said that ter to August. land refused to extend emergen- it is clearly temporary.’
cy support beyond Friday – amid
ted tax cuts announced by Kwasi the tax cuts could speed up the Grant Fitzner, chief economist fresh financial turmoil. His comments appeared to
Kwarteng would boost growth in pace of price rises, which the UK's of the Office for National Statis- BoE governor Andrew Bailey prompt a dramatic fall in the val-
the short-term. central bank, the Bank of England, tics, said: ‘The economy shrank in pushed aside pleas for an exten- ue of the pound, which fell more
But it said the cuts would "com- is trying to bring down. than a cent against the dollar to
plicate the fight" against soaring Downing Street defended the August with both production and sion while in Washington.
‘My message to the (pension) its lowest rate since September
services falling back, and with a
prices. chancellor's plans, with the Prime small downward revision to July’s funds involved – you’ve got three 29.
It expects high prices to last Minister's official spokesperson
longer in the UK with only Slova- saying its policies aimed "to sup-
kia out of the eurozone set to see port British people at a time of
higher inflation. global high prices" and said the Truss stands by pledge to scrap no-
Inflation, which measures how IMF report showed "the global
the cost of living changes over challenges that countries are fac- fault evictions
time, is expected to peak at about ing".
LIZ Truss has promised to stand The pledge was also included in During the Commons at prime
Government plans cap on by a Tory manifesto pledge to scrap Mr Johnson’s 2019 election man- minister’s questions on Wednes-
so-called “no fault” evictions.
ifesto, with a vow to introduce a day afternoon Labour MP Graham
renewable energy revenues accused of “betraying” renters amid Speech the same year the commitment would be an “act
The prime minister was last week Renters’ Reform Bill at the Queen’s Stringer said that going back on
reports the policy could be ditched. However, the legislation was nev- of extreme callousness”.
RENEWABLE energy gener- electricity prices are set by gas- Proposals seeking to overturn er presented in the last session Par- Asking the PM “Can the prime
ators and nuclear power plants fired generation. section 21 of the 1988 Housing liament, with campaigners warn- minister reassure the 11 million
could have their revenues capped With the price of gas rocketing Act, which allows landlords to evict ing around hundreds of thousands private renters in this country that
under a new government plan. in recent months, some nuclear tenants without reason and with of tenants have suffered the misery she will carry out the commitment
The move could hit the profits power plants and solar and wind just eight weeks’ notice, were first of no-fault evictions since the Con- to get rid of no fault evictions?” he
energy companies, like SSE and farms have made big profits. outlined by Theresa May back in servatives first made the pledge to asked. In a short reply, the prime
Scottish Power, generate from re- This is different at newer facil- April 2019. scrap the practice. minister said: “I can.”
cord-high wholesale power prices. ities, which produce power at an
Ministers say the proposal agreed price.
would ensure consumers and busi- The temporary cap, which will Ai-Da robot makes history by giving evidence
nesses pay a fair price for energy. limit the amount generators can
But energy bosses say the plan make, is set to be introduced in the to parliamentary inquiry
- for which there are few details - House of Commons on Wednesday
could put off investors. as part of the Energy Prices Bill. AN AI-powered robot has be- Aidan Meller, the director of the Meller confirmed the questions
Currently in the UK, wholesale Renewable energy companies come the first to give evidence to project that created Ai-Da. had been pre-submitted to ensure
say the UK government's pro- a parliamentary committee after Mr Meller said Ai-Da had been better quality answers from the
posed cap on their revenues would appearing before peers to discuss created to “explore the whole AI language model used to power
effectively amount to a windfall the impact of technology on the world of AI and robotics” and was the responses. However, in a sign
tax, something Prime Minister Liz creative industries. a “contemporary art project” to of the limitations of technology,
Truss has said she was opposed to. Ai-Da is a humanoid robotic examine the future of creativi- the committee was delayed by
Unlike traditional windfall tax- artist designed to look like a hu- ty amid concerns that artificial several minutes after Ai-Da tem-
es, the cap will not be a retrospec- man female, and uses artificial intelligence, machine learning porarily shut down and had to be
tive tax on excessive profits made intelligence to create art and also and other technological advanc- rebooted. Ai-Da’s appearance be-
by renewable energy companies. has the ability to respond to ques- es could replace human creativity fore the committee came as part
Instead, the cap will in effect be tions. The robot appeared before in the future. During the session, of its inquiry into the future of
a tax on revenues above a limit set the Lords Communications and Ai-Da answered questions di- the UK’s creative industries and
by the government. Digital Committee alongside rectly from peers – although Mr how AI could impact the sector.