Top forecasters have suggested that the outlook for the UK economy next year is bleak as business confidence is fading due to recent results.
Ernst & Young Item Club has predicted that growth in 2009 will be just 1%, as living costs rise and falling house prices have a negative effect on consumer spending. They went on to say that employers confidence had fallen to its lowest level since 1996.
A minimal growth of disposable income combined with a sharp rise in food and fuel costs, means that spending on non-essential items will be cut.