Allan Monks, economist at JPMorgan, estimates the economy will expand by 0.4 per cent this year, partly owing to lower energy prices. Ellie Henderson, economist at Investec, said “the fall in energy prices is the sunshine on a cloudy day” for the economy because it eased pressure on businesses and households. Lower wholesale gas prices mean the government’s cap on household energy bills has become less expensive for ministers.
Rishi Sunak has hailed a “new chapter” in the UK’s relationship with the European Union as he secured a deal to end the long-running dispute over the post-Brexit Northern Ireland protocol.
The prime minister and Ursula von der Leyen, president of the European Commission, described a “decisive breakthrough” at a joint news conference in Windsor after four months of intense negotiations.
Both leaders emphasised a sea change in the relationship between the UK and the EU, with Von der Leyen addressing the prime minister as “Dear Rishi” and saying she had taken “a great sense of satisfaction” in building a new constructive partnership.
Von der Leyen hinted that the deal would open the door to a closer and more constructive relationship with the EU including, as its first steps, closer participation to Brussels programmes, as well as working together on Ukraine and climate change.