What do we do in a recessions

Unfortunately the commercial and freehold sector is one of the early casualties in a recession, which in turn has a hard impact on redundancies and property owners facing repossession. Companies are going into liquidation such as Woolworths, which I am sure shocked, us all, but unfortunately there are many companies large and small struggling to balance their balance sheet, and have no option but to either cut back, make redundancies or close.

It is honestly quite sad and depressing to see and hear people’s dreams and years of hard effort washed down the drain.

Recession always has an increase in social security spending, a decrease in tax receipts and also government spending finances which always tends to depreciate. This makes it more difficult, for the government, to cut taxes. Slower demand generally reduces along side this and this is why the Bank of England has the power and the justifiable reason to cut interest rates, because they could see the financial difficulties people were faced with. This is fantastic news for borrowers when the banks decide to pass on the reduced rate cuts, but unfortunately this is terrible news for people who are saving money in the banks and building societies.

Ultimately we have all tighten our financial belts and are trying to hide in the long grass, waiting for the sun to shine again, but unfortunately some people can’t afford to wait.