British economy back in recession

Pressure on the British government’s economic strategy intensified over night after shock figures showed Britain’s faltering economy was back in recession.

Prime minister David Cameron said the estimated 0.2% quarterly decline in GDP was “very, very disappointing”, but insisted there will be no change to the coalition government’s programme of austerity and deficit reduction.

A slide in construction output and a stagnant services sector were blamed for the surprise slump which, after a fall of 0.3% the previous quarter, has caused Britain’s first double-dip recession since the 1970s.