Cost of living crisis: UK economy shrinks 0.1% in March as country tightens its belt

Given the gloom over rocketing fuel bills and rising inflation, it can be no surprise that families are tightening their belts.

Now it’s starting to hit the economy – which shrank 0.1% in March. The cabinet met in Stoke-on-Trent today, with the prime minister and chancellor apparently warming to the idea of a windfall tax on big energy companies.

But can they reverse the slump in consumer confidence and prevent a full-blown recession?