Tighter restrictions for longer will lead to slower growth and higher public borrowing
The sharp fall in share prices in the City told its own story. Hopes that the arrival of 2021 would see a bounce in the economy after a year to forget have been dashed. The new mutation of the virus that causes Covid-19 will put strains on the NHS and has disrupted Christmas plans for millions. It will also delay recovery from the biggest peacetime collapse in growth in more than 300 years.
The introduction of tough tier 4 restrictions for London and most of the south-east of England means that the bounce expected in the first three months of next year is now unlikely to happen this side of Easter.
