New warnings on economic downturn
Updated on 20 October 2008
Politicians argue about how to ride out a recession as government borrowing in the last six months outstrips the whole of last year.
Government borrowing has soared to a record eight billion pounds last month as the Chancellor said he was ready to spend his way out of a looming recession.
But there's a new warning about the state of the economy as top forecasters Ernst and Young Item Club said Britain's economy was deteriorating rapidly and was already in recession.
The Tories have their own proposals, urging immediate tax breaks for small businesses.
