UK GDP falls: A weak economy has been dragged under by the end of free COVID testing

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UK GDP falls: A weak economy has been dragged under by the end of free COVID testing
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The UK's gross domestic product (GDP) contracted by 0.3% in April, despite economists expecting to announce a slight rise in the figures. Sky's Ed Conway takes a look at the impact of the end of free COVID testing on the latest figures.

Today we learnt that headline gross domestic product fell in April - not just a little but a lot: 0.3%.And it follows a fall in March, meaning that, all told, we are about 0.4% poorer than we were in January.

But now the testing programme has been scaled back, and April, it so happens, was the month free testing came to an end in England. And this, it turns out, was the main explanation for the fall in GDP that month.CBI: 'It will feel like a recession' All those factors which have been well covered in recent months - the cost of living crisis, the rise in energy prices to record levels, increased taxes, strains on businesses as they continue to adjust to the change in trading conditions following Brexit - continue to have an effect on the economy.

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