UK facing worst economic crisis in six decades

In a very stark and frank interview with a national newspaper Alistair Darling, the Chancellor of the Exchequer, has stated that the UK is facing its worst economic crisis in six decades. The chancellor insisted that he had to be straight with the public because it was his duty to do so, and he warned that the economic downturn was set to be far more damaging and long lasting than had originally been predicted – mirroring earlier opinions from a number of trade and industry groups.

The Shadow Chancellor, George Osborne, said that Darling had ‘let the cat out of the bag’ with regards to the state that the UK economy was in. However, some have praised the chancellor for his ability to be honest and frank about the economy. Darling went on to state that the government had failed to get its point across with regards to understanding the financial challenges that consumers and businesses were facing due to higher living costs and rising bills.

The chancellor was asked why he was being so frank in the interview, and he said: “I think it is important that government ministers and particularly me as Chancellor level with people. I explained that what is happening to every country in the world, ours included, is that we have a credit crunch the like of which we have not seen for generations. We have that at the same time as oil and food prices going up. But I also am clear that the fundamentals of our economy are strong.”

However, George Osborne stated: “Who is telling the truth at the top of government? The prime minister says the economic situation isn’t as bad people think and that Britain is well placed to weather the economic storm but the chancellor says we are at a 60-year low.”

He added: “Gordon Brown has briefed out stories that he has an economic recovery plan all worked out, meanwhile the chancellor says the downturn will be more profound and long-lasting than people thought. It’s not clear whether Alistair Darling meant to tell us the truth about the mess 10 years of a Labour government has left our economy in, but he has certainly let the cat out of the bag.”