Recession. The dreaded ‘R’ word has finally hopped on board after making its way around the world in a matter of months.

Within the last few months alone we’ve witnessed the rise and fall in fuel prices, the soaring of food, gas and electricity prices, the great decrease in house prices, the increase in unemployment and redundancies, small businesses going bust and the people of Britain suffering from the effects of the credit crunch.

All because banks and lenders could no longer afford to lend having had no more cash for people to borrow.

In late October this year, Prime Minister Gordon Brown finally admitted for the first time that Britain was heading toward a recession after share prices fell dramatically.

He said: “Having taken action on the banking system, we must now take action on the global financial recession which is likely to cause recession in America, France, Italy, Germany, Japan and – because no country can insulate itself from it – Britain too."

Could it be that Britain had previously missed any signs of a possible recession? Was it that we just waited to hit rock bottom? Or was it because Britain had turned a blind-eye to it with nothing but hope that it will simply fly by?

UK economy to be the “worst prepared”

Financial expert Jasmine Birtles of Moneymagpie.com, had previously  said that “the Government and the Bank of England may be able to stave off a really bad slump in the next month or two if they make the right decisions,” according to ivillage.co.uk, suggesting now that the Government and the Bank of England may not have made the right decisions.

According to David Cameron, Britain was the “worst prepared.” He said that during the financial crisis, Britain had proved itself to be the “worst prepared” economy compared to the US, Japan and other EU economies. He stated that Prime Minister, Gordon Brown had been “wrong.”

Cameron told Brown: "You kept telling us that Britain was better prepared to face the recession. In fact, we are the worst prepared."

After figures revealing that Britain has the highest personal debt compared to that of any country in the world, Cameron said that Britain has “one of the highest budget deficits in the world and out regulation system has failed.”

Mr Brown however, believed different. He argued that Britain was actually better prepared during the downturn of the UK economy.

He said: "The reason why we are better prepared than other countries is that for years we have had low interest rates, we are now getting inflation down and it will come down in the next year.”

"We have high levels of employment - higher than almost every other major industrial country - and we can come through this.”

UK recession to get worse

“In Britain people are losing their homes, small businesses are closing, unemployment is rising, manufacturing output again today is falling,” said Cameron.

And just when you think times are hard, next year could be even worse as the real hard times for the people of Britain is yet to come.

Cameron argued that “If we are better prepared, why is our recession forecast to be deeper?”

Britain may face a “deeper recession” as "according to the Commission our recession will be worse next year than in Germany, France, Italy, Sweden, Spain, Greece or the US,” he added.

Brits advised to start saving

More people are now being encouraged to save up in order to survive the possible further decline of next years economy.

The “Helping Britain to Save” campaign had been launched after figures from the “Financial Face of Britain” found that 37 per cent of Britons are saving less.