Britain’s economy recovered half of its Covid-19 crash by the end of July, helped by pubs and restaurants reopening from lockdown, but the bounce-back is expected to slow as job losses mount and Brexit tensions rise.

After shrinking by a record 20 per cent in the second quarter, output expanded by 6.6pc in July, slower than June’s monthly rate, the Office for National Statistics (ONS) said.

Finance minister Rishi Sunak welcomed the figures but added that people were rightly worried about the coming months.

The economy remains 12pc smaller than its level in February, before the pandemic hit Britain.