http://news.bbc.co.uk/1/hi/business/8508002.stm

Lousy news if you have any savings.

What isn't lousy news in that regard these days?

You're not supposed to save in a recession, you're supposed to spend. You hear that, Ernie?

Every man for himself I say

Are we abandoning ship already?

You can't spend it if you don't have it. My savings are there for when I need them, and I'm not about to deplete them just to help hoist a broken economy out of the mire.

Actually individuals need to have some savings for emergencies and to put some aside for retirement. People will have different levels but governments should be doing a lot more to encourage personal savings. If they had done so in the past then people would not have to save so much now. It is the wild swings that make matters worse. Heather's attitude is the correct one.

Interest rates are low to discourage saving and encourage spending, if you don't spend then the economy will get worse, not better.

Look, I'm already dipping into my savings in order to cover expenses. What's going to happen when the pot runs dry? I become a burden on society, that's what. I'm currently putting on hold some expenditure that I have been planning for a couple of years. I can't afford a bloody holiday this year because I have no money to pay for it. I can barely afford to put fuel in my car, and I'm dreading the next heating bill thanks to the seasonably colder weather. Our weekly food bill has jumped up, despite low inflation - I mean, WTF?!?

I think you'll find an awful lot of pensioners in the same situation as me. They've scrimped and put a bit away for a rainy day for years, only to find some greedy bastid bankers feck up the entire system and ruin it for everyone.

So, I'm not spending money to save the system. The rich bastids can do that - they've thieved enough from the system they can bloody well put it back in. I'm sitting here warming my hands by a candle.

</rant>

We've had a torrid 12 months in terms of business. We haven't had to dip into savings ( yet ) but we haven't paid anything into the pension nor have we had a holiday ................ so it won't take much more of this to really mess us up.

you think its bad now wait until after the election, as its going to get much much worse …

and by the way when VAT went back up 2.5% all the retailers added 2.5% to all goods including goods that have or had no VAT on them
what a wonderful 2nd world nation we live in, enjoy next year 'things can only get better' …

What a charming prospect. That has cheered me up no end.

I personally think that there should be a second rate of inflation for the low paid and pensioners. The current version of CPI includes computers and plasma screens, How many pensioners buy plasmas? It also has a lower proportion allocated to food and heating which we all know rise way more than the average rate of inflation. They should use this low income version of CPI to adjust pensions, benefits and the minimum wage. That way the levels of poverty would not keep rising.

I am annoyed at the low bank rates. It may help support house prices but at what cost. Pensioners who rely on their interest income are getting robbed blind by the banks and government.