The Bank of England Governor says that despite a resilient labour market, the economy has barely grown over the past two years.
Sir Mervyn King said: "The unexpected weakness reflects the impact of the euro area crisis and its effect on confidence and bank funding costs - and the sharp squeeze on real incomes from higher-than-expected world energy and food prices."
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A British family believed to have fled to Syria have joined Islamic State, according to a statement said to be released on their behalf.
After the heatwave come the storms, with lightning flashes illuminating the night sky across much of the country last night.
An Independence Day event at a UK base has been cancelled by the US Air Force over security fears.