Interest rates, taxes, mortgages and the new Budget…

…the four key words of today. Everyday we receive new dark reports from the economic world about the imminent financial crisis in Uk. For example? The Guardian underlines again: “Britain will be one of the developed countries worst affected by the severest recession to hit the global economy since the early 1980s. The Paris-based Organisation for Economic Cooperation and Development said it expected unemployment across its 30 rich-country members to rise by 8 million to 42 million by 2010 as all parts of the West felt the effects of the financial crisis”. “Britain’s economy may not begin to grow again until the end of next year”, – explains The Timesonline.co.uk agreeing with most international opinion.

The Guardian goes on to say that the Governor of the Bank of England may work on the interest rates: “Interest rates may have to be cut more aggressively to ensure that businesses and consumers benefit from cheaper borrowing”. The Timesonline.co.uk states: “mortgage lending slipped back towards a record low in October, as consumers turned to their deposits to fund other spending”. In the meantime “Prime Minister Gordon Brown swept aside three decades of economic orthodoxy with tax increases on the rich” and plans that, Bloomberg says, “will double Britain’s national debt”.

BBC.co.uk publishes all the documents about the Pre-Budget Report: the latest tax and economic forecasts and future departmental spending plans. Have a look at them and let’s see what they will mean for us.