What is a recession?
A recession is a period when the economy shrinks rather than grows. In the UK it is usually defined as two quarters in a row of falling GDP. During a recession, businesses earn less, unemployment often rises and government tax income falls, so borrowing usually goes up.
Economists measure the size of the economy with gross domestic product (GDP). When GDP falls for two three-month periods in a row, the UK is said to be in a 'technical recession'. The UK had a short, shallow recession in the second half of 2023. Much deeper ones came after the 2008 financial crisis and during the 2020 Covid lockdowns. Recessions can be caused by financial crashes, energy price shocks, high interest rates or sudden events like a pandemic. They hit people through job losses, smaller pay rises and business closures. Governments often respond by letting borrowing rise, and the Bank of England may cut interest rates. In the three months to August 2026, the UK economy grew by 0.7%, so it was not in recession.
The left usually argues for more public spending and investment during a recession to protect jobs and support demand.
The right usually stresses keeping borrowing under control, cutting taxes and red tape, and letting businesses lead the recovery.
Britain is split. Now you decide.
World events in Population Decides can tip the economy into recession, and you choose whether to borrow, cut or tax your way through it.
Play Population Decides freeCommon questions
What is the difference between a recession and a depression?
A depression is a much deeper and longer recession. There is no fixed definition, but it usually means years of falling output and very high unemployment.
When was the last UK recession?
The UK had a technical recession in the second half of 2023, when GDP fell in two quarters in a row.