Government reapplies northern lockdown after 24 hours in latest U-turn

The UK faces a permanent £33bn annual hit to the economy as it emerges from the coronavirus pandemic, Bank of England governor Andrew Bailey told MPs on Wednesday. Structural changes in the economy as people change their behaviours in response to the pandemic could cause long-term “scarring” to growth and employment, Mr Bailey warned. The Bank predicts that behavioural shifts, such as more working from home and people being more cautious about going out, will reduce gross domestic product (GDP) by 1.5 per cent every year below where it had been expected to be.