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A black day for Brown's Britain
Joe Murphy11 Feb 2009
Gordon Brown suffered a series of crushing blows today on the blackest day so far for credit crunch Britain.
The Bank of England governor admitted the economy was in "deep recession", Mr Brown's banking adviser quit and unemployment soared to almost two million.
Then there were hints of greater scandals to come as the Serious Fraud Office revealed that allegations involving half a dozen financial institutions are being considered for criminal investigations.
The banks crisis swept ever closer to No10 with the resignation of Sir James Crosby.
The deputy head of the Financial Services Authority fell on his sword a day after the Evening Standard revealed allegations that he sacked a whistleblower at HBOS who warned that the bank was taking unacceptable risks.
Sir James denied the charges and said he was quitting for the good of the FSA.
The resignation of Sir James came 30 minutes before Mr Brown faced the weekly Prime Minister's Questions session in the Commons, prompting speculation among MPs that Downing Street had forced Sir James's hand to protect the Prime Minister.
Answering a barrage of questions about why he had appointed, and knighted, a banker so deeply implicated in the City's recent errors, Mr Brown admitted that the FSA, which is at the heart of the City regulation system he himself put in place, was in need of improvement.
The day began with unemployment surging to 1.97million, the highest level since 1997, when Labour took power on a wave of anger at the Conservatives' handling of the economy. Experts fear it will reach one in 10 by the end of next year.
Minutes later Bank of England governor Mervyn King stood up to deliver the bleakest official appraisal yet about the state of the economy.
He said the contraction between last summer and this summer would be around four per cent, which was far more severe than previously forecast.
There is also a significant risk that the slump would prove longer and deeper than feared, with the economy shrinking three per cent this year.
That contrasted bleakly with the pre-Budget report predictions from Alistair Darling which looked to the beginnings of a recovery in the second half of this year.
Mr King said it would all depend on the world economy - and the risks were "significantly on the downside."
In the Commons, Tory leader David Cameron said the Prime Minister should admit he had made mistakes, including the appointment of former HBOS chief executive Sir James as a regulator and adviser to the Government on issues like mortgages.
"Why can't you just admit for once that you made an error of judgment," he demanded.
"Isn't this part of the problem. Sir James has had the decency to resign. Why can't you have the decency to admit you got something wrong?"
Mr Brown ruthlessly distanced himself from Sir James, saying the banker was "no longer an economic adviser of the Government and has only been so in the context of doing two reports".
Returning to the attack, Mr Cameron said: "No apology about boom and bust. No apology about Britain being better prepared.
"Even the bankers have apologised. When are you going to?" But the Prime Minister retorted that without government intervention the banks would have collapsed and turned recession into depression.
"If we had not stepped in to save the banks, I would have had to apologise for not taking the action that was necessary. But we took the right action," he said.
The problem for Mr Brown is that critics are increasingly focusing on his failure as Chancellor to set up a regulatory system to protect the City from itself.
He created the FSA which has been widely criticised for failing to sound an alarm. Mr Brown chose Sir James to serve on it while the latter was still chief executive at HBOS.
Coming close to admitting his regulatiory system had not worked, Mr Brown told MPs: "I believe the system of regulation in this country can and will be improved."
Reader views (53)
Suzzie from Oz, clearly you never heard of the march against going to war in Iraq before troops were deployed. Well over a million people turned out for that. What was the result? You need to live here under labour to be able to comment, because then you know that no matter how loud you shout, your voice will not be heard.
Unless you're a lobbyist or a senior banker of course.
- Ted Cowan, london UK, 12/02/2009 10:11
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I think we all agree here that Brown is incompetent, either as the Chancellor or the PM. But here's the scary thing, what are the chances of him being voted out in the next general election? There are 3 points here, the first being that the growing welfare class also vote, and you can bet they will vote for Brown. The second is the growing number of people employed in the public sector. As various reports have shown, many areas are almost totally reliant on either welfare, government jobs or both. Who are they going to vote for in order to safeguard their communities? And finally, do these people, and to be honest, myself included, really feel that David Cameron is the man to lead Britain? I want a change, but the sad fact is that the Torys are not that strong, and the proof is that most damage inflicted on Brown has come by events caused by his own incompetence and not by anything that Cameron has said that illuminate the problem and then suggest a way forward. And let's face it, how may of us want to vote for a bunch of Old Etonians and Oxbridge toffs? We need a change, but I'm worried that it's not going to happen until the Torys find a credible leader.
- Ted, london uk, 12/02/2009 09:47
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Everyone has been quick to blame the current Administration, but the route cause of all this (and remember it's a global situation) goes much further back, remember Reagonomics and Thatcherism?? They beleived in a totally de-regulated market and I suspect most of the people moaning on here supported that. Well we are reaping the rewards now. A totally 'free' economy will never work and we need to learn the lesson, but at least a lot of unemployed bankers will be a price worth paying
- Mick, London, London, England, 12/02/2009 09:03
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The credit crunch is mostly Brown and also Blair's fault! I remember the huge Labour campaign posters at the last election in Enfield, where I lived at the time, telling us about our 'record low interest rates' and 'booming economy' at the last election. Having studied economics I knew the borrowing binge was unsustainable back then, although I couldn't have predicted things would turn out so badly. The fact is Labour and the Bank of England have managed the economy extremely badly indeed over the past decade and they are mostly to blame for our current predicament.
- Mike, London UK, 12/02/2009 08:49
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also known as the great scottish triumph?
- Marianne, SW France, 12/02/2009 06:52
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I am fed up in reading all of your comments and none of you do nothing you are all gutless keyboard warriors.
Come on for gods sake where is that bulldog spirit that you are supposed to have.
Take to the streets and demand your rights, im sure if a million of you walked on downing street in a peacefull demo you are bound to get noticed, we would in Oz.
So come on and stop winging and do something about it.
- Suzzie, Perth Australia, 12/02/2009 02:16
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I just hope that when the Tories get back in they will put Brown and Blair in the dock. Let's really find out what happened over Iraq and let's have some justice for those who have been robbed of their pensions. We're not just in this financial disaster because of the banks. We're in this mess because Gordon Brown has stealth- taxed us for years, encouraged us to run up huge debts on our credit cards and frittered our money away on cronies, ill thought out schemes and social experiments. A disgrace. Gordon Brown and all those who serve him should be utterly ashamed.
- Gordon Bennett, London, 11/02/2009 23:09
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Oh come on! we all need to get a life! when have we ever had a Labour Government that has not ultimately ended in deep recession, mass unemployment, soaring inflation and bankruptcy?? They always spend too much and borrow way too much - anyone who does that will end up bankrupt - yet statistically, half the people on this thread have voted for them at some point - We have no one to blame but ourselves...
- Zady, London, 11/02/2009 22:57
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Surprise surprise – in the UK a whistleblower (despite the so called public interest disclosure laws) is at best ignored. Even the BBC censors (‘moderates’ in BBC speak) what people say if they do not like it.
I have no sympathy for those, who ignoring and benefiting from the wrongdoing of others, eventually come a cropper.
Having worked mainly under only 2 governments of notionally opposite complexions, it seems to me that we need a change in government – not just in party of government.
- Alfred Vella, Milton Keynes, 11/02/2009 22:43
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It's not Browns Britain.
- Frank, Home Counties, England., 11/02/2009 22:40
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Gordon Brown will not resign so let's be pragmatic. We are all in a bit of a kerfufle. Negative talk drains the spirit. We need a change no doubt and positive thinking is the way forward. We are in a recession however everyone believes we have the grit to be the first nation out of the traps - the UK is very dynamic. If everybody wants change why not set up a petition on downing street website?
- Peter Pii Pa, Ipswich, 11/02/2009 22:37
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We must get Bean and NuLiebor out of government now.
The taxpayers need an organised march on Downing Street
to insist on a General Election. No other government
has done so much deliberate damage to this country
and, its way of life.
Why do they hate it so much?
- David, Fleet UK, 11/02/2009 21:43
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when will this man be put on trial for treason?
- Neil, London, 11/02/2009 19:41
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I echo all of the anti-Labour comments here. As a serving POlice Officer with the Met I have witnessed the deterioration of this country by "Burglar Brown" and his arrogant, patronising Nu-Labour ministers.
GORDON BROWN YOU ARE AN UNELECTED FRAUD - RESIGN NOW!
- Dan Howard, London, UK, 11/02/2009 19:38
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We have to wake up to the fact that we have been part of a giant poker game in which debts have been used as chips in order to stay in the game. The game was globalisation and the idea was to make "everyone" better off.There were so many chips on the table when Lehmans tipped the table over and all of our money with it.Gordon Brown naively let the game go on in exchange for a cut of the profits (taxes) but he was not the only one.The scary bit is they want to put the table back up and begin all over again as there does not seem to be any other "game". Certainly Obamas only answer so far is create more chips and keep playing .... scary!!
- Michael, London, 11/02/2009 19:20
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Lets not forget the rest of the Labour Party.
For example Jacqui Smith who is intent on removing our civil liberties and pushing forward the "Big Brother" state, whilst all the while sticking her snout in the "expenses trough".
Don't make the mistake of re-electing Labour with a new leader. Get rid of the lot of them.
- Simon, London, 11/02/2009 19:03
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Call an election?
and what will change?
DON'T VOTE.or if you do spoil your ballot.
Only mass voter abstention will bring change in this hierarchy of crooks
- Kedge, marlboro wilts, 11/02/2009 19:00
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I can't believe the British public are standing for this! We have become a nation of timid sheep.
Gordon Brown was not even elected. He is destroying our nation by inches, and we stand by and watch with blank expressions.
- John, Glastonbury, 11/02/2009 18:45
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Bring on the elections and let the people decide.
- Martin, Sheffield, 11/02/2009 18:31
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So - if it wasn't for GB all would be well would it?
What about the millions who overdosed on easy lending and the pushers in the banks who were only too pleased to feed and encourage the habit.
Expecting GB and a government to stop all this is about as smart as believing the police could have ever stopped the drugs bonanza.
Remember too, that Dave C and his party are much more likely to cuddle up close again to where the big money is. So where would that get us?
- Barrie, essex UK, 11/02/2009 18:30
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Why are MP's not doing their job and call for disposal of the worst British government we can have?
- Jacqueline, Hampstead, London, 11/02/2009 18:30
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There is absolutely no doubt that we have been badly let down by those whose job it was to steer the ship. The senior officers on the bridge have stuffed up and there should be a court of enquiry. Who was the Chancellor of the Exchequer for ten years leading to this debacle?
- Cyrjames, Berwick-Upon-Tweed, UK., 11/02/2009 18:18
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It seems unfair to blame Gordon Brown, who is merely the UK State Premier within the EU. In Latvia, where I am based, we received a small bail-out from the IMF and more from the EU. It therefore seems that the economic problems within the UK are problems that should be dealt with by the EU and not on a state by state basis. Gordon Brown is not the President of the EU, although his predecessor Tony Blair was. All EU states are affected by the credit crunch and so it is completely inappropriate to blame one State Premier, when the policies of the EU have given rise to the problems which we all face.
- Ashley, Liepaja, Latvia, 11/02/2009 17:55
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Unfortunately Denise's comments are reflective of the average intelligence of voters and the main reason why the majority of people shouldn't be aloud to vote.
- Andrew, St. John's Wood, London, 11/02/2009 17:53
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Dectora, London UK. Yes we are in a world recession ( something GB tries to mention at every available opportunity). However we are in the worst possible position of all developed countries to weather the storm (according to the IMF) because of the borrowing that GB has done over the passed 10 years to finance his various failing socialist pet projects. We are also so dependant on the banking sector for revenue in this country (who was chancellor setting the regulations for the past 10 years I cant remember)that because this is a financial crash we are more screwed than anybody else. Strange how GB or indeed all those now calling for bonus bans never critised the banks when the tax was rolling in financing the boom and everybody felt great !
- Neil, london, 11/02/2009 17:53
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BS Brown just won't drown like a good rat would, he'd rather take down everything with him instead. The 'man' is despicable, dishonourable, disasterous and spineless.
- Ralph, GB, 11/02/2009 17:45
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Gordon, for the sake of our country, please go now!
- George Dorman, gillingham, 11/02/2009 17:43
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Perhaps Brown would like to reflect on the number of black days he has inflicted on the UK voters in the past 12 wasted years.
- Bingham Macnamara, lymington, hampshire, 11/02/2009 17:31
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Yes, it's a world recession but we helped start it and we are getting it far far worse than the rest of Europe. Surely that has to be down to our government. It's time this loser PM gave up and let someone else clear up the mess, it's going to takes ages whoever is in power but I, for one, have no confidence in Gordon Brown any more.
- Simon, London, 11/02/2009 17:30
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A great pity the crushing blows are not more physical.
- Thorrun, Brentwood UK, 11/02/2009 17:29
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He bled us dry when he was chancellor and wasted the revenue, he sold the countrys gold reserves at rock bottom price despite being warned against it. Between Blair and him he has done immense damage to this nations standing. He wasn't put into the top job by the electorate, he elected himself. He should be sent back to Fife in a handcart
- W Lawrence, northumberland, 11/02/2009 17:26
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This man Brown is completely lacking any sense of honour, integrity, judgement or responsibility. He is simply arrogant and should resign or call a general election immediately. He won't of course since he enjoys power and will take the country down with him.
To blame the world financial crisis for the major problems which face this once great nation is farcical as he must know even in his demented dithering state that both he and the governments actions have greatly exacerbated the situation.
I will however give him credit for being a great announcer of plans, which never seem to actually get implemented. Bit like the old communist 5 year planning process perhaps.
- Tony, Cardiff, 11/02/2009 17:19
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We need an election, and we need it now.
- Liz, London,UK, 11/02/2009 17:15
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The individuals writing these comments are absolutely right about Brown. He is an unpleasantly arrogant man.
But I wonder how many of the comment writers voted for NuLabour at the last few elections. They need to own up and accept their share of the blame.
- Watson, London, 11/02/2009 17:09
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Have none of you noticed that this is a world recession? Japan is in recession, so is Germany, so is the United States. Is this Gordon Brown's fault? No doubt were David Cameron to become Prime Minister tomorrow some of you are naive enough to believe that the recession would end: just like that.Dave would wave his wand and everything would be perfetc.
- Dectora, London UK, 11/02/2009 17:06
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I second that motion. Resign!
- Bulldog, London,UK, 11/02/2009 16:51
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Harry H, London
He will not do the honourable thing and resign - because he is not a man of honour!
We want an Election NOW to try to salvage something of this once great nation.
- Denise, London UK, 11/02/2009 16:49
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even ostriches need to come up for air sometimes and as the sand clears from their eyes they begin to see clearly what most others have been seeing all too clearly for some time. i believe when one is confronted by some trauma one of the initial stages one goes through is denial and then a reluctant acceptance of the inevitable.
if not deluded, then inept.
- M.O'Brien, london.uk, 11/02/2009 16:37
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To Nichola, is Cameron really the next one?
- David,Chertsey, Chertsey.UK., 11/02/2009 16:27
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Of course, none of this is Gormless Frown's fault - it's a global problem. He seems to think that using that 6-word epithet will exonerate him and his government from any blame. Sad and pathetic. Give someone else a go with your bat, Gordon.
- Nobby Clark, Perth, Scotland, 11/02/2009 16:26
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Normal service has resumed !
- Joe, Swanley Kent, 11/02/2009 16:22
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Brown is a disgrace to Great Britain. Why did he not save anything in the good times, sell the gold at knock down prices and it goes on???? A gentleman would resign and call an urgent election NOW. Everything is in total disarray in the UK - Health, Education, Transport, Economy, Crime, Immigration. Stop all these benefits toooooo......
- Maggi Weller, London, UK, 11/02/2009 16:18
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Most of us here, are sufficiently aware to know that Crash Gordon has a lot to apologise for. Having seen Brown at Prime Minister's Questions today, not only am I certain that he is an arrogant incompetent but now believe he is a cowardly bully. The number of times he attacked David Cameron and the Conservatives after Cameron's questions allocation had finished, show that he is not fit to rule this country.
Do the honourable thing and resign!
- Harry H, London UK, 11/02/2009 16:06
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The Prime Minster refuses to abide by the Ombudsman's decision and pay compensation to members of Equitable Life. His obduracy is based solely on the fact if he did so he would have to own up to the mistakes of the FSA, the regulatory body that he put in place.
On his own devising stealth taxes in a back room Gordon Brown has no equal but,he has not and never will have what it takes to be a Prime Minister.
- Andrew, Pudsey, England., 11/02/2009 16:05
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Give Gordon Brown some allowance for his incompetence as he is surely out of his depth [ and sinking ] as prime minister.
- John, DUNDEE, 11/02/2009 16:01
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Gordon Brown - Resign - NOW - and take all the Labour party and 'Blairs Babes' with you. David Smith, Cannes
- David Smith, Cannes, France, 11/02/2009 15:59
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He simply HAS to go.
- Chris, London, 11/02/2009 15:55
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Just when we thought it can't get much worse than this, it did!
We employ bankers with absolutely no qualifications in either financial services or macro economics yet pay them literally millions for the privilege. We shoot the messenger and have non-elected leaders that run around like headless chickens blaming everyone else.
If this is not a wake up call, then I don't know what is!
- Raj, Birmingham, 11/02/2009 15:47
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"1997, when Labour took power on a wave of anger at the Conservatives' handling of the economy".
Twaddle. In the opinion polls of May 1997 the Tories were ahead on the economy. Oh yes they were.
- Stalin Mcsporran, london uk, 11/02/2009 15:30
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This is what we have been warned about for years and years: it is The New World Order. Get used to it, because our lassitude and complacency have allowed it to happen.
- Neil M., london uk,, 11/02/2009 15:19
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Gordon Brown is just UNBELIEVABLE.
- Malcolm, London, 11/02/2009 15:08
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Brown needs to go..... he should resign. every aspect of British life has been eroded. The Economy, Employment, Education, NHS, Transport, Law and Order. How many peerages has he given. There is to much coruption the party is riddled with it.
Bring on Cameron
- Nicola Nardelli, london, 11/02/2009 14:54
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Mr Brown's failure as chancellor has helped to bring about this recession. He should now have the decency to admit he made errors of judgement and put himself at the mercy of the electorate - CALL AN ELECTION
- R.F., Yorks, UK, 11/02/2009 14:46
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