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Britain’s Going Into Recession – Official

Blog: Common Sense 4 Britain
Posted by: knightrider45 Friday 10th August 2007, 8:33am
Last edited 10/08/2007 8:33am by knightrider45

The likelihood of Gordon Brown calling an early election looks more likely now as he will want to avoid calling a General Election in the midst of a recession he has created

British households are facing the biggest income squeeze in decades. The weight of higher debt payments and costs - not to mention taxes - is set to hit families everywhere in the country.

High street spending is already falling, house prices are moderating, especially in the South, insolvencies have risen and home repossessions have jumped.

Mervyn King, Governor of the Bank Of England, has admitted this week that debt and insolvencies are now a serious Social issue, and the bank has acknowledged that families are spending more of their income on mortgage payments than at any time since the housing crash in the 1990's.

The Bank of England are seriously considering raising the interest rate next month to 6 per cent in an attempt to control inflation. Repossessions and insolvencies are expected to soar as a result.

Financial experts have warned that the UK economy is heading for it's worse year since 1992, with the consumer spending slump halving Britain's output.

Speculation is rife that Gordon Brown may call a snap election before the painful economic effects of his spend and tax policies, along with interest rises, become obviously, and painfully, apparent to the British public.

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