The UK economy is “frightening”

Business leaders have today suggested that there is a bleak picture with them suggesting that there was a “frightening deterioration” towards the end of 2008. The British Chamber of Commerce (BCC) who carried out the survey said that the results were the worst since it began in 1989. On the 23rd January official figures are set to confirm that the UK is in a recession. The recent closure of many large firms like Woolworths is a clear indication that the credit crunch is certainly taken grip and some of the UKs biggest firms are being affected.

People appear to becoming more concerned as the risk of redundancies and job loss emerge. However, although people are worried at this time figures have shown that Christmas spending was not down on last year. Let us know how recent events have affected you.

Tories suggest that VAT cuts have not worked

David Cameron, head of the Tories, has today suggested that the government’s attempt to boost the economy by cutting VAT has not worked and has been an unbelievable and expensive failure. In a BBC interview Mr Cameron highlighted that shopper numbers in December fell according to figures. The holiday on stamp duty when purchasing houses under £175,000 has also not worked according to the leader.

Further comments suggest that the government have spent £12.5bn of our money and have wasted it. The term “Empty Promises” has also entered the equation with the government being accused of promising to deliver but without success. Everyone is hoping that 2009 sees an improvement in the economy and that initiatives implemented by the government begin to have some effect.