Figures released today show that amount of people claiming benefit in the UK has risen beyond 1 million.

The total number now on state benefits is 1,072,000 and is the highest since 2001. This is particularly worrying because unemployment usually occurs a significantly longer time after a country enters recession. This in turn indicates that the recession could be much more sever and longer lasting than experts had previously been forecasting.

*GROAN*

The recession continues to be strengthened by poor decision making by the Bank of England.

The 1% rate cut announced in early December was actually almost a more significant cut. The minutes show that many in the committee felt a larger cut maybe necessary to slow the recession down. In the end a 1% cut was settled on and when the minutes of the meeting were made public (yesterday according my sources) the pound fell sharply against the Euro.

At the same time rate setters in the US cut th interest rate down to 0% in a much more decisive move.

Gordon Brown won international acclaim for his bank bailout strategy, however since that point to me it seems that the international community has been less than positive about the UK’s handling of economic strategy.

Cheers,

BB