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Britain: We face economic crisis


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Baroness Vadera: We face economic crisis

By Robert Winnett, Deputy Political Editor

Britain was facing "the first real economic crisis" in a generation, a senior Government minister has admitted.

Baroness Vadera, a business minister and former adviser to Gordon Brown, made the comment as the price of oil experienced its biggest one-day increase in almost 20 years.

The minister said the economy was facing "testing times" but insisted that Britain was well-placed to withstand the global turbulence as fuel and food prices rose sharply.

World oil prices jumped by $5 a barrel on Thursday – the single largest rise in a day since the first Gulf war.

Last night it stood at a record high of more than $135 a barrel, more than double what it was last year. The future price of oil has also risen sharply, leading to warnings of high petrol prices for the next eight years. The average price is currently 126.35p per litre for diesel and 113.98p for petrol.

Several airlines have warned that they will have to increase prices and cut flights in response to the high oil prices. Consumers were also told to brace themselves for big rises in energy bills, with wholesale gas and electricity prices more than 80 per cent higher than last year.

It means that the average family faces a £650 increase in petrol and energy bills this year.

A study will reveal that millions of drivers are cutting back on car travel due to the sharp increase in the cost of motoring.

Almost two thirds of the British public have been forced to cut spending and make a "conscious decision" to travel less by car – with the over-65s particularly badly hit.

Almost half of the population has cut back on other areas of spending such as eating out, entertainment and the weekly shop to meet the higher driving costs.

The impact of the rising cost of motoring has been uncovered by the AA, which surveyed 17,500 people last month – before the latest round of price rises.

Yesterday, the AA, which has more than 15 million members, wrote to Alistair Darling, the Chancellor, urging him to reconsider planned increases in tax on fuel and cars. It is supporting a Daily Telegraph campaign calling on the Government to offer motorists a fairer deal.

Edmund King, the president of the AA, said Mr Darling should consider appointing an oil regulator to study the market. "People are having to make quite big decisions about changing their whole lifestyles because of the high fuel price," he said.

"Planned tax rises should certainly be abandoned but we would also like the Government to consider appointing an oil regulator.

"There is concern over whether consumers are getting a fair deal at the pumps. The price of oil is so essential for the country as a whole that ministers should intervene."

The Treasury has said that it understands motorists' concerns and the Prime Minister has said he will push Opec nations to increase oil production.

Yesterday, speaking in the House of Lords, Lady Vadera said: "We are facing a testing period in the economy. We are facing the first real international economic crisis of globalisation."

She said it was an "uncomfortable situation".

However, Alan Duncan, the shadow business secretary and a former oil trader, said that the Government's strategy was misguided.

Full story, source: The Telegraph

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its not a crisis for people who use common sense when it comes to money and don't spend more than they earn, but no we live in a time where people have borrowed more than they earn, have god knows how many credit cards, and now its about faced and is biting them on the a***.

oil/petrol, well, 40p goes to the petrol company and 5p to the petrol station, 70p is tax, if the government didnt tax us to the hilt we'd be fine petrol wise,

when it comes to energy bills we're to blame, we let them get away with it, we're getting ripped off and we know it but do **** all, if on mass we refused to pay the prices we'd get somewhere.

the French are good at taking no sh**, they don't even have wheel clamping, and aren't they on strike right now?.

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They are indeed dude. But we won't do anything like the french do, it just isn't British (and yes, I 'was' being sarcastic at the end :tu: )

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the French are good at taking no sh**, they don't even have wheel clamping, and aren't they on strike right now?.

weren't you cheering and applauding when Lady Thatcher castrated the unions? Now you want them back to strike?

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Good old England. "WE WILL SURVIVE!" lol. We have been through much worse!

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Good old England. "WE WILL SURVIVE!" lol. We have been through much worse!

boy the politians do like finding what will break us though.

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weren't you cheering and applauding when Lady Thatcher castrated the unions? Now you want them back to strike?

no i wasnt cheering, because i wasnt even born when she came to power and was only 8 when she left office, i dont really want strike action, i just want the people of this country to stand together against all these ludicrous prices we pay, we all agree we're getting ripped off, but we do nothing, i dont know why we put up with it. :unsure:

look at the price of your

council tax,

Water,

Leccy

Gas

Petrol, all these and more, and what makes it worse is that while the poor people of this country struggle, the companies turn around and have the cheek to announce record profits, :D in the millions or even billions.

Edited by stevewinn
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no i wasnt cheering, because i wasnt even born when she came to power and was only 8 when she left office, i dont really want strike action, i just want the people of this country to stand together against all these ludicrous prices we pay, we all agree we're getting ripped off, but we do nothing, i dont know why we put up with it. :unsure:

look at the price of your

council tax,

Water,

Leccy

Gas

Petrol, all these and more, and what makes it worse is that while the poor people of this country struggle, the companies turn around and have the cheek to announce record profits, :D in the millions or even billions.

Amen brother.

People, especially those who are in a position to make or begin to make a difference, won't step up for fear of being branded a radical or a militant. For proof of that, look what happened to the last militant who tried to make a difference, a certain politician from your own neck of the woods? Where is Derek Hatton now? Where are all the others who had the courage to stand up and be counted when it really mattered? And look what we're left with.

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no i wasnt cheering, because i wasnt even born when she came to power and was only 8 when she left office, i dont really want strike action, i just want the people of this country to stand together against all these ludicrous prices we pay, we all agree we're getting ripped off, but we do nothing, i dont know why we put up with it. :unsure:

look at the price of your

council tax,

Water,

Leccy

Gas

Petrol, all these and more, and what makes it worse is that while the poor people of this country struggle, the companies turn around and have the cheek to announce record profits, :D in the millions or even billions.

Strikes are organized by unions...no union no strike....

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Well, I for one don't want to return to the days of Unions trying to run the country.

Couldn't we like.. just... borrow some unions just for the duration ?

Meow Purr.

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Well, I for one don't want to return to the days of Unions trying to run the country.

Couldn't we like.. just... borrow some unions just for the duration ?

Meow Purr.

Just as you can't borrow some life.... NO

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