Britain 'faces major economic crisis'

18/09/2009

The UK is still at a far greater risk than the US and much of Europe of falling into a "full-blown" economic crisis, with millions of ordinary households likely to end up paying dearly.

That is according to a new report from the City investment bank Nomura, which has stated that there is a very "clear and present danger" of the country falling even further into the red.

The report warned that international markets could decline to buy the UK government's debt, thereby exacerbating the current economic troubles and even harming the country's reputation on the global stage.

According to the Daily Mail, the shadow chancellor George Osborne has called this latest report a "wake-up call", with the money worries of millions of ordinary households unlikely to improve should the issue of debt not be effectively addressed.

Meanwhile, the Institute for Fiscal Studies has warned that the UK economy is in danger of "lurching back to the 1970s", with both personal and public debt levels dangerously high.

In addition, Industrial Trends Survey for September from the Confederation of British Industry has suggested that manufacturers' orders are "depressed".

Kevin Still, director of Eurodebt, said: "There have been a number of stories in recent weeks regarding coming out of recession, however, EuroDebt is still seeing a rise in demand for its debt solution services, as are the debt advice charities – who are swamped.

"There remains considerable government interest in the debt management sector and that is probably because there will remain considerable demand for both formal and informal debt solutions well into the future, like IVAs and Debt Management Plans, respectively."

Tags; Current UK Economy,

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