Sky News business editor Michael Wilson

We aren't in a recession, according to Alistair Darling, this morning. Amid the dull verbiage of yesterday's Budget , I notice ' Britain is better placed than any other economy to face the slowdown in the world economy.' That is highly debatable, but let's not do it here.

Technically, it's true we are not in a 'recession' as such, but we are definitely in a slowdown. There US is,  however,flirting with a recession, and that's why the market took a tumble – even after the Federal Reserve pumped another $200bn into the credit markets on Tuesday. It turns out that the 'joie de Fed', as they called it, evaporated and its bold move wasn't enough to soothe the deeper worries.

But what about you? I'm guessing that, while economists and the Chancellor can argue about it, you are getting towards a sort of personal recession. Are you?

I'm looking at some figures from uSwitch.com which show that British workers will be taking home an extra £44 a month on average after this year's pay rises, but families are facing a cost of living increase of £148 a month.

Worst hit, of course and unfortunately are our essential frontliners – police, nurses and teachers. I've already noted the rise in average household bills – some 9%, and we've often shown that the 'true' rate of inflation is way above the official figure of 2.2%.

Couple that with council tax increases, energy bills and of course the small matter of filling your tank at the pumps, and we are certainly feeling a squeeze. But enough of my thoughts. Let me test the temperature after the 'joie de darling'.

Tell me, please, where and how you're feeling the pinch.

Comments

[David Pilling 19 Mar 2008 22:35:01]

Am I feeling the squeeze?

I'll say.

Has anyone thought about the pensions paid in Euros to ex-Pats?

Thanks to the recent pathetic handling of the UK economy, the value of the pound has fallen from €1,50 to €1,26 in just a few months. A fall of 16%.

My UK pension is paid in Euros directly into my french bank account every 4 weeks.

How many UK pensioners would put up with a reduction of 16% in their state pension?
They'd be marching in the streets.

I've lived and worked in France since being moved here in 1975. I can't be expected to move back again after 33 years.

My wife is french, my life is french - even my dog is french!

How sad that part of my pension is British.

Thankyou Mr Brown.

[Esther Fryer Spain 17 Mar 2008 17:03:07]

I always listen to your very informative news on Sky re. what is happening in the finance world, especially at the moment!

I wonder if you can advise what you envisage as regards the Euro rate at the moment?

The exchange rate is getting lower and lower, a friend has said she thinks they may have to devalue the Euro if it gets any lower.

Thank you.

[michael wilson sky 14 Mar 2008 19:41:27]

thank you for all your comments..this is clearly an unfolding story..robert, in scotland - i meant that the detail of the debate can wait..i'd rather get your personal experiences first..don't worry, this is something we are going to pursue!!

kind regards

michael

[Robert, Scotland 14 Mar 2008 10:21:53]

Very often of late I wonder what is the point of the Media, in my innocence I thought they were there to inform the Public of the truth no matter who might try and tell it differently.
Yet, Alistair Darling can make the following statement and it goes unchallenged;
"Britain is better placed than any other economy to face the slowdown in the world economy".
The Sky Business news team publish a report that says this is highly debateable, but, lets not go there. Why not?
There is no spare cash in the Government's coffer, Government borrowing stands at £43 billion, this borrowing need goes beyond capital expenditure and does not tell the true extent of borrowing levels because of the deceitful omission of the costs of the Private Finance Initatives.
So, I repeat my question to the Sky Business team, why not go there?

[Alison, Cheshunt 14 Mar 2008 08:57:08]

My husband and I have lived in the same house for 12 years. In this time our joint salaries have increased by around £10k, we ought to feel better off - but we don't. Utility bills, council tax, petrol, income tax has all risen even faster. We've hardly done any home improvements as otherwise we wouldn't even get a holiday. I know there are millions of people who are even worse off because their salaries have risen even less, if at all. We've never claimed any benefits nor ever been out of work and as we don't have children feel we're penalised even further with little tax incentives. My parents are retired and struggle to pay their bills when they should be taking it easy. They worked hard their whole lives. My dad has a private pension so god help those who haven't even got that! It's about time the benefits culture was pulled to pieces completely because we can no longer afford to pay for those who refuse to contribute to the UK economy. I'm sure this is where it all stems from and I think this government wastes a fortune. Whilst they get a nice tidy sum to decorate their (2nd) home, us poor can't afford to decorate our first...and why the hell shouldn't they have to pay the full price for their lunch at work like the rest of us. It's drives me mad.

[Khalid 13 Mar 2008 18:01:26]

Sir
Contrary to popular thoughts, notwithstanding the past record of those in control of the nations books, I found the contents of the budget to be most encouraging, yet despite the fact that Darling is a book keeper and not a marketeer, I was somewhat expecting a dull hour or so.
However, despite the notion that they didnt save during the good times, what else did we expect from the fruits of our labour?
Looking forward as the air clears, then it is bewildering that the utility giants were not told to bring their meters in line with on-line discounts, but politics being as such, no doubt that time will come sooner rather than later.
So, as [Nelly Furtado] said [Say It Right], if it hurts it works and this time next year we will be singing from a different hymn sheet as guess what, elction time will be that much nearer!
So, where and how would you like to feel the pinch?

[Edward London 13 Mar 2008 16:12:23]

The cost of living is going to be a burden for familys and students but for the singles they can compromise a few things to maintain their lifestyle the issue of energy prices is probably one of the worst parts because it will affect everybody we'll definetly feel the pinch up till mid year earliest lets hope with warmer weather we'll use less energy towards summer and by then see signs of a recovery in the economy.

[Andy, Bucks 13 Mar 2008 14:56:42]

I'm starting the think the govt wants to take all of our money and may consider giving a little bit back as an allowance - but only if we're good little boys and girls.

My pay may (and I stress may) go up by about £40-50, but compared to 8-9 months ago I'm already paying £40/month more for fuel alone - the price seems to rise on a daily basis. Add to that rising gas/electricity costs, and a £50 rise is a joke.

Still, I suppose the MPs need to pad out their expense accounts somehow.

[Adam, Exeter 13 Mar 2008 14:36:40]

I am a student at university and thus do not have a full time job. I do work in the holidays, however. My father is self employed and my mother works part time.

The rise in the cost of living has been hard to avoid. A walk around the supermarket tells you that the price of food, especially meat, has risen ridiculously. Utility bills are another sting which, when coupled with petrol prices, insurance premiums and for me, rent, the cost of living is without doubt outstripping wage increases.

And all the time, the tax bill hangs like an albatross around my family's neck. My mother and father are currently scraping every penny they can to pay the bill, calculated against my father's higher earnings last year. This budget is no help at all - to us at least.