A couple of articles published today, January 1 2009, on the present
stage of development in the U.K.'s economic crisis....

"First shots fired in UK retail price war" by Elizabeth Rigby,
Consumer Industries Editor, Financial Times.
http://link.ft.com/r/FG6LAA/CPATQ/WAFE/N8LPD/ZZFFF/B7/t
EXTRACT:
Three of Britain's leading retail and leisure chains kicked off the
New Year with a round of price cuts as they sought to offer a little
cheer to hard-pressed consumers in what is expected to be a tough
year on the high street.

In the wake of a wave of retailing collapses around Christmas, Asda
said it would cut prices on 1,000 lines across its stores – Birds Eye
chicken grills will be cut from £2.49 to £1 while Herbal Essences
shampoo will also cost £1 against a previous price tag of £1.98 – to
help shoppers "make ends meet" in 2009.

Meanwhile, JD Wetherspoon, the high street pubs chain, said it was
reducing prices on some drinks and foods from next Monday, with
Greene King IPA to be cut to 99p a pint in nearly all of its 713 UK
pubs. Tesco, Britain's biggest retail chain, said it would cut petrol
by 3p a litre at the pump. Tesco said on Thursday it had already been
cutting prices and planned more.

Dire trading in the run-up to Christmas has proved the death knell
for a number of weaker chains: Zavvi, the music specialist,
Woolworths, Whittard of Chelsea, and The Officers Club all failed
just before the festive season began. Adams, the children's wear
chain, and French fashion chain Morgan have also collapsed in recent
days.

And while huge high street sales have lured throngs of shoppers into
stores over the past week, it is not enough to offset lacklustre
trading in the run-up to Christmas, according to Experian, the retail
consultancy and credit checking company. It said on Thursday that up
to 26 retailers could collapse in the first four months of the year
as they struggle to reconcile falling sales with rising rent and debt
repayment bills.

It predicts that retail insolvencies will rise by a fifth in the
present year, with an estimated 440 businesses going into
administration in the first four months of 2009.


Recovery forecast "too optimistic"
----------------------------------
Britain faces the worst economic outlook since the early 1980s,
according to the Financial Times' annual survey of leading
economists, which shows considerable concern that the Treasury's
forecast of a recovery in the second half of the year is too
optimistic. Read more:
http://link.ft.com/r/FG6LAA/CPATQ/WAFE/N8LPD/TOEEW/B7/t