With the number of consumers needing debt advice and debt help programmes on the increase, it will not come as welcome news that the recession is likely to bite harder than was first predicted and that unemployment could reach three million by 2010.
The CBI has warned that the economy could shrink by as much as 2% by the end of next year in a shock announcement. Only two months ago the CBI predicted that the economy would actually grow by 0.3% over the same period.
The government has increased spending in an effort to make the recession as short and painless as possible, however this large increase in the national debt will have to be paid back at some point in the future with tax increases or public spending cuts.