Britain descends from boom to bust

Now its official - Britain is in recession. For a Government which took the credit when the economy was growing, it should not be surprised to be blamed for the recession. But despite ten years at the helm of the Treasury, Gordon Brown still refuses to accept that he has taken the economy from boom to bust, let alone any accept any responsibility.

The economy shrank 1.5 per cent in the last three months of 2008, the worst slump in almost three decades. Unemployment is rising rapidly and looks set to pass 2 million in this quarter and forecasters predict 3 million by the end of the year. Sterling has lost a third of its value against the dollar over the past 12 months and even more against the euro. The Government is now borrowing so much that investors are beginning to wonder whether Britain will be able to fund this borrowing binge. This is why there is talk that the Government risks needing a humiliating 1970s style bailout from the IMF.

The impact is starting to be felt in Shropshire too. The number of people claiming Jobseeker's Allowance rose by more than 10% across the county in the last quarter. From Alveley in the east of the constituency, where the largest employer in the village announced its closure, to Clun in the west, where the Sun Inn has closed, businesses are shutting shop or shedding staff.

What is needed is for confidence to be restored. This will only happen when people sense the decline is reversing.

The country has now lost confidence that this Government can halt the slide. In the US new leadership offers fresh ideas and hope from a change in approach. In the UK we need the same opportunity for change.