Accountancy firm highlights recession risk

A report by accountancy firm Deloitte has illustrated the risk, to the UK economy, of a slide into recession.

Stating the possibility of a recession over the next two years, the Deloitte Economic Review also notes that the UK's economic growth is about to perform at a low level, last seen 15 years ago.

A downturn in the housing market has also been predicted, with anticipated price falls of five per cent over the course of the year.

"The global financial crisis and the associated credit crunch have brought an end to the period of easy credit that in recent years has been the bedrock of rapid rises in house prices," said Roger Bootle, economic adviser for Deloitte, a firm established in 1845.

Also noted in the report, is the possibility that the downturn in the economy could cause employers to reduce their staff base at a faster rate.