Gordon Brown admitted yesterday that the UK is heading for a recession as the problems in the global economy worsen.
Speaking at Prime Ministers questions yesterday, the Prime Minister used the word “recession†publicly for the first time, echoing the sentiments of Bank of England Governor Mervyn King on Tuesday.
Mr Brown told MPs: ""Having taken action on the banking system, we must now take action on the global financial recession."
He said this was likely to cause "recession in America, France, Italy, Germany, Japan and - because no country can insulate itself from it - Britain too".
Conservative Party leader David Cameron said the prime minister must accept some blame for Britain's downturn.
"He claimed the credit in the boom, why won't he take responsibility in the bust?" Mr Cameron said.
The bleak assessment follows the statement from Mr King, who warned that Britain was probably entering its first recession in 16 years and claimed that the British banking system had been at its closet point yet to collapse in peace time.
That assessment led to further panics in the global financial markets, with oil prices falling to less that $70 per barrel and the pound falling to $1.620, its lowest level against the dollar since September 2003.
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