Despite the economic bailout completed last month consumers in Britain have been warned that debt and unemployment is set to spiral out of control for at least the next year.

0.5% has been cut from the rate of interest last week, but even this self preserving measure will not be enough to stave off a tough period of restless natives according to Deloitte.

Roger Bootle, economic adviser to Deloitte confirmed that recession is now on the cards so Britons should prepare to tighten their belts.

"Bank and the Government's recent efforts to inject capital back into the beleaguered banking system have failed to stop the spread of the credit crunch to UK households and companies, and it is now a question of damage limitation for policymakers. All the policymakers can do is to try to limit the depth and duration of the recession," he said.

Further forecasts from Deloitte suggest inflation will fall to 1% by this time next year.