The Chancellor, who is normally cautious, gave a series of dire predictions about the UK including that he thought that there would be 2 million people unemployed by Christmas; that he has no idea how serious the credit crunch could become and that the economy could be in a much worse position than many people think.

Many people today are now questioning the Chancellor’s judgement in being so openly pessimistic about the economy. He is in charge of the economy and it is his responsibility to ensure that there is confidence in UK Plc. Admitting that things may be worse than people imagine is, in effect, only likely to make things worse, as people become even more worried about their jobs, their ability to borrow, the value of their home, and therefore, in turn, look to spend less on consumer items and service industries.