Prepare for more doom and gloom

David Kuo of financial website The Motley Fool - Fool.co.uk says: "Consumer confidence continues to hover at near record lows. The Gfk NOP Consumer Confidence Index fell four points in January to minus 37. At these beaten-down levels there is a risk of total and complete collapse in consumer confidence unless the Government acts swiftly.

"The measures that the Government has taken thus far have done little to restore confidence. At the heart of the problem is consumer debt, which has been built up during the boom period, and continues to rise. This debt, which now stands at over £1.4 trillion, must be whittled down if consumers are to have certainty in their own futures.

"We are calling on the Government to slash personal taxes instead of encouraging banks to lend more. Britain does not need a nation of heavily indebted consumers, but instead a nation of people agile enough to pay off their debts quickly.

"Consumer confidence is like a large ship that takes time to turn around. Cutting personal taxes will help by immediately putting money into the pockets of consumers, who can decide whether they wish to save it, spend it or invest it. The first will benefit banks, the second will benefit the high street and the third will benefit consumers in the long term.

"Unless the Government acts quickly to avert the clear and present danger, there is a risk that the ship of confidence may sink without trace."