How the Recession Has Affected the UK

The Recession in the United Kingdom has had alot of knock on effects which have effected the entire population. It has caused companies to reduce the number of staff that they employ this in turn has caused unemployment to rise. With the rise of unemployment more people have gone on benefits such as job seekers in order to have money to live on as a result the tax has been increased to make the benefits available.

It has also caused the banks to drop the interest rates on savings accounts which has put people off saving especially when the bank rate is 0.5%. There is really no incentive for people to save as there money is not really gaining at all. Banks have also decreased the number of people who they will give mortgages too so more people are renting as they cannot afford to buy a house.

House prices are static as people are not buying but people want to sell so this is causing a flooding of the market, but not many people can buy a house without a mortgage. Also people think that as long as they have a place over there head do they really need to move? For many people the answer is no as they are focused on making sure they have enough money for food and essentials.

Also the petrol prices are stupidly high and have only just now started to fall but even now its around £1  a litre which is stupidly high.

To me the price of petrol should be reduced so people can afford there cars otherwise people will stop using them, also the tv licence has increased which is stupid. I mean if people have less money coming in how can they afford for these to go up.

Overall the United Kingdom is in trouble at the moment and Gordon Brown needs to pull his finger out.