Darling admits we are in for two year recession

Having recently tried to play down the severity of the recession, the Chancellor of the Exchequer, Alistair Darling, has recently admitted that it is likely that the recession is set to last for around two years. His most recent opinion has been shared by the Business Secretary, Lord Mandleson.

Darling said that the downturn had been sharper than he had expected it to be, and is expected to cut his growth forecasts, according to reports. Even the Prime Minister, Gordon Brown, said that he had failed to foresee the financial crisis that was gripping the country, and said that there was no alternative to using taxpayers’ money to try and bail out the banking industry.

Opposition leader, David  Cameron, said that the public has now lost confidence in the government, but in a recent report Labour said: ‘The Government is clearly taking a risk with public finances. Is it a calculated risk, and a better option than passivity? This is our view.’

However, Mr Cameron has stated: ‘It is confidence that will be key to the recovery. We also have to get the Government finances under control, a proper plan for regulating the banks to make sure we have sensible policies so we get confidence back.’