Sir Alan Budd accepts a double dip recession could happen

Sir Alan Budd, the former chairman of the Office for Budget Responsibility, has today accepted that the UK economy could actually backtrack into a double dip recession. When questioned about the potential for a double dip recession in the UK, on the BBC Radio 4 "Today" program, he suggested that "our fan charts show it is a possibility" although he believes the UK economy is likely to continue to grow albeit at a slower rate than we have seen over the last few months.

Despite the fact that it is unlikely that the UK economy will fall back towards a double dip recession, the very fact that many people are even considering the possibility is a major concern. Again, we could move into the potential for "talking ourselves into" a further difficult economic period which could have dire consequences for the UK economy in the short, medium and longer term. If the UK was to dip into a further recessionary period there is very little in way of funding available for the government to bail out the money markets, banks, businesses and consumers.

If the UK economy was to fall back into a double dip recession it is highly unlikely to be the only leading economy in the world to do so.