Recession In The UK Feared Following ONS Report

Rising Job Losses Strengthen Fears of a Recession in the UK

Recession in the UK feared following economic standstill

The Office of National Statistics (ONS) has released a report highlighting the increased likelihood of a recession in the UK following figures that show the UK economy is now at a standstill. This fear is backed up by a report last week showing an increase in the number of people claiming unemployment benefits in the second quarter of 2008.

Job-Losses Rise as British Industry Predicts Slowdown

Unemployment figures from the end of June now stand at 1.67 million, with another 20,100 new claimants of job-seeking benefits recorded in July. This makes for uncomfortable reading for the whole country, especially after the UK economy has benefited from continuous economic growth over the last 5 and a quarter years. In fact, the ONS report shows the weakest economic data since 1992 – when the UK was still recovering from the affects of recession in the early 1990s.

Rising Consumer Prices and Repossession Figures

Added to the fear of another recession in the UK is the recent rise in repossession figures outlined in previous Payplan Debt News posts, a slow-down in manufacturing prospects and a slump in UK exports following a survey of over 600 British manufacturers by the Confederation of British Industry (CBI). This will add to the prospect of further job-losses in the next few months. A succession of other financial implications directly affecting consumers, such as rising home energy costs, food shopping bills and petrol prices does little to give relief to the current economic climate, at home or amongst British industry.

Consequences of a Recession in the UK

The consequence of all this bad news suggests that, if it wasn’t already being felt, the next few months will be extremely hard financially for many families across the UK. Not only will many UK householders be struggling with their priority bills (rent/mortgage, council tax, utility bills, food shopping and housekeeping costs), for those with debts to pay, such as credit card bills and personal loans, the amount of available income to pay back unsecured borrowings will decrease – increasing vulnerability to creditor action on defaulted debts seems highly likely.

Payplan Debt Management

Payplan offer free debt management plans for those struggling to meet their monthly payments to creditors. For free debt advice, call 0800 280 2816 or contact Payplan using their debt calculator online.

UK Recession in the Media

BBC – UK economy comes to a standstill
BBC – Jobless total up as economy slows

Written by on August 22nd, 2008

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