Lloyds Bank predicts ‘mild recession’ for UK this year and tumbling house prices

Bonus pot rises to £446m but small number of customers ‘struggling to make ends meet’

Lloyds said it expects the UK to dip into a mild recession this year (Stefan Rousseau/ PA) (PA Wire)

Lloyds Banking Group has said it expects the UK to dip into a mild recession this year, as it braces for a fall in house prices and as mortgage lending continues to recover following September’s mini-budget.

It said it was focused on supporting its customers who will be “struggling to make ends meet” – as it increased its bonus pot for bankers to £446m last year, the highest amount dished out since 2018.

The forecast comes after an economic survey showed a surprise return to growth by businesses this month, raising the likelihood of another Bank of England interest rate hike in March.