“Bank Governor offers bleak view”; “House prices to fall 9% in 2008 – or will it be 35%?”; “Slow growth, price rises, job cuts” – all of these are recent headlines from the national media and illustrate the ongoing effects of the credit crunch on the UK economy. With much debate on whether the UK will go into recession, it is certainly clear that we all have some financial challenges to face.
This is a marked change to the buoyant economy that we had enjoyed until midway through 2007. Currently the largest law firms are announcing some very encouraging financial results, but these reflect the profits generated in 2007. There is a possibility that, as the credit crunch takes hold, the results for 2008 will not be so impressive. As early as February this year, the British Chamber of Commerce signalled that 2008 would be a difficult year for British business. For the first time since the mid-1970s, the word ‘stagflation’ has reappeared.
