The papers on Friday focus solely on the expected recession as readers are told to ‘batten down the hatches’.
However, Liz Truss has argued that the recession forecast by the Bank of England is “not inevitable”, as she insisted her swift tax cuts are needed rather than Rishi Sunak’s slower approach.
The Foreign Secretary used Sky’s televised debate for the Tory leadership contest to warn of “very, very difficult times” without “bold” action rather than her rival’s caution.
Allies of Mr Sunak, the former chancellor, have argued that Ms Truss’s “dangerous” approach would risk further stoking inflation, which is already forecast to hit 13%.
Low-growth plans
Labour shadow minister Conor McGinn used the debate as evidence that the Tories, with their “their low-growth, low-wage plans”, will not be able to fix the economic crisis.
“The two continuity candidates have no answers to sky-high inflation, rocketing energy bills and the lengthy recession the Bank of England has warned is on the horizon,” he said.
Papers
Fears about Britain’s “big squeeze” are splashed across the front pages as the working week concludes.
The Guardian reports the Bank of England (BoE) has raised rates and warned of 13% inflation, The Times says “Britain slides into crisis” and the Daily Express tells its readers to “batten down the hatches”.
Guardian front page, Friday 5 August 2022: Bank raises rates and warns of 13% inflation. Plus special report on global heating: The burning issue pic.twitter.com/lQceGMMxMR
— The Guardian (@guardian) August 4, 2022
Friday’s TIMES: “Britain slides into crisis” #TomorrowsPapersToday pic.twitter.com/abR13Hm9al
— Allie Hodgkins-Brown (@AllieHBNews) August 4, 2022
Front page: Recession on way … Time to batten down the hatches#TomorrowsPapersToday https://t.co/tvzs7aWOIE pic.twitter.com/lQqpMenYkg
— Daily Express (@Daily_Express) August 4, 2022
The BoE has warned of a year-long recession, according to the Financial Times and The Independent, while Metro and i refer to the time ahead as “the big squeeze”.
Just published: front page of the Financial Times, UK edition, Friday 5 August https://t.co/ZrPdyJmTCG pic.twitter.com/kzCgmoIBOB
— Financial Times (@FinancialTimes) August 4, 2022
Friday’s INDEPENDENT Digital: “Britain to enter year-long recession by Christmas” #TomorrowsPapersToday pic.twitter.com/Lgv3QXI6th
— Allie Hodgkins-Brown (@AllieHBNews) August 4, 2022
Tomorrow’s Paper Today 📰
THE BIG SQUEEZE
🔴 Biggest loan rise since ’95 as bank predicts recession🔴 No.10 rivals’ TV battle over how they’ll economy #tomorrowspaperstoday pic.twitter.com/QNaIEmTnX7
— Metro (@MetroUK) August 4, 2022
Friday’s front page: The Big Squeeze #TomorrowsPapersToday
Latest: https://t.co/6BXTtwCWFL pic.twitter.com/4zrGGmmkje
— i newspaper (@theipaper) August 4, 2022
The recession will cause the biggest income drop on record amid surging energy prices, says The Daily Telegraph.
The front page of tomorrow’s Daily Telegraph:
‘Recession to cause record drop in income’#TomorrowsPapersToday
Sign up for the Front Page newsletterhttps://t.co/x8AV4O6L2Y pic.twitter.com/4O22lHaBiA
— The Telegraph (@Telegraph) August 4, 2022
“Just where are our leaders?” asks the Daily Mirror, which notes the Prime Minister and Chancellor are currently on holidays.
Friday’s front page: Missing In Action #TomorrowsPapersTodayhttps://t.co/QHop57l6TT pic.twitter.com/SY7s9FaYaB
— The Mirror (@DailyMirror) August 4, 2022
Critics accuse BoE Governor Andrew Bailey of being “asleep at the wheel”, reports the Daily Mail, which adds the banker is “running out of credit”.
Friday’s @DailyMailUK #MailFrontPages pic.twitter.com/IllsuhpePh
— Daily Mail U.K. (@DailyMailUK) August 4, 2022
And the Daily Star acknowledges the “bad news” about the economy but also carries “good news” that the Premier League resumes tonight.
Friday’s front page: Silver linings… 🤔 #TomorrowsPapersToday https://t.co/EdbzL377Aq pic.twitter.com/JFD82y2Svx
— Daily Star (@dailystar) August 4, 2022
Related: Watch: Liz Truss left in a spin after she is presented with her own u-turns