As if the news regarding the recession isn’t bad enough, watchdogs are now suggesting that unless there are tax increases and a reduction in spending, Britain are set to face a debt ‘Armageddon.’

The Audit Commission chief executive Steve Bundred, who monitors how taxpayers' cash is spent, has stated that whoever wins the next election could possibly face an economic Doomsday scenario.

He stated: "At that scale of indebtedness, the Armageddon scenario most feared by the Treasury - that there will be insufficient lenders to match the planned level of borrowing - begins to look a distinct possibility."

Mr Bundred added: "That's why tax increases and spending cuts are inevitable immediately after the election, assuming that there are signs of economic recovery by then."