"exceptional measures" to deal with the economy

VAT cut, tax increases, National Insurance increases, borrowing up significantly are part of the emergency measures introduced by New Labour to get the UK out of recession.
It looks like the UK will indeed be the hardest hit of the major European countries. There are significant tax increases to come in order to pay for these emergency measures!

One consequence of the UK having financial difficulties is that people will reduce their charity donations. It is completely understandable but unfortunately this does give the charities serious problems. Please help the NSPCC to help children in need during these economic difficulties.

Unemployment is now at 1.82 million, which is the highest for eleven years and is projected to get worse.

The Bank of England has said that Britain's economy is probably already in recession and was likely to contract further in 2009.

The Bank of England has cut interest rates by 1.5% leaving the base rate at 3%, which is at it's lowest rate since 1955

Britain will be hit hardest by the recession than will the other European leading economies, according to a European Commission report.
They forecast that unemployment will rise to 2.25 million in 2009.
Only Estonia and Latvia will suffer deeper recessions than Britain in 2009.
The European Commission report suggested that the European Union itself was in, or close to, recession.

The UK economy has shrunk 0.5%, the first such fall for sixteen years. There are various definitions of 'recession' but it generally means that the economy shrinks over a period of time. The UK will not be on a recession until the end of December, if the economy is still shrinking at that time.
UK shares and the value of Sterling have also fallen.

UK government borrowing is now at the highest for more than 60 years with net borrowing rising to £8.1bn, according to the Office for National Statistics

Unemployment is increasing. Many people in work are having their opportunities for overtime reduced or removed. The price of food is rapidly increasing in the supermarkets. The cost of fuel bills is also rapidly increasing with more price increases to come this year. House prices have dropped significantly although the effects vary according to where one is in the UK.

Some big companies are in trouble because of the credit crunch. We have recently seen banks, building societies, airlines and other businesses failing in the UK as well as in Europe and the USA.

the UK is facing worst economic crisis in 60 years "and it will get worse" according to Chancellor Alistair Darling. He has said that the UK is facing its worst economic crisis in 60 years. He also said in an interview with the Guardian newspaper that the economic downturn would be more "profound and long-lasting" than most people had feared.

What can people do?

There is not an easy answer, every person and situation is different. However many people don't know how to start sorting out their problems or know what they need to do! Some people do not manage their finances or even know what their bills are or when they are due.

The first step is to take control of your finances in order to spend your money on what you choose to spend it on and, most importantly, also pay those bills that you have to pay (even if you don't want to!). is essential, to know what bills you have and when they are due, We have a number of options that people can investigate and evaluate for themselves. Most really are fairly obvious! The objective is to help people to take control of their finances which will help to take a lot of stress out of their lives!

The next step is to look at your income and see if you can change things to earn more. However it will probably be easier to look at where you spend your money and to cut out expenditure that you do not really need and to make significant savings.

Identity Theft

This is seen as a modern day scourge and it is definately becoming a problem. People can use information about you to build a financial profile of you. They are then able to buy products, borrow money and incur other debts all in your name. You then have the problem of proving that it was not you on a wild spending spree!

Severe Debt?

People with severe debt problems should get professional help. They should do it immediately and they should face up to their problems and admit to themselves that they need help. There are ways that they can sort themselves out but it requires professional help. The sooner they seek this professional help the sooner they will sort things out!

Struggling to make ends meet?

Many people, particularly families and the elderly and those with low, fixed incomes, are struggling to pay the bills. Those who are living off credit should act immediately. The previous statement is pretty obvious, but so many people simply ignore their situation. They get out of their depth and become scared to act.
Please make the effort and start to try to help themselves and their families.
If people need professional help then they must go to the appropriate, qualified professionals. There really is nothing they can do on their own.
Otherwise there are some actions that you can take and even then you may need professional help with some aspects of these. Many are obvious but if proper foundations are not there then the building will fall down!