More than 6000 jobs were under threat last night as the recession broke into the New Year with Gordon Brown and David Cameron each trying to seize the political initiative.
More than 6000 jobs were under threat last night as the recession broke into the New Year with Gordon Brown and David Cameron each trying to seize the political initiative, write Michael Settle and Mark Williamson.
The collapse of Waterford and Wedgwood, the historic crystal and china maker, put 2700 jobs at risk in the UK and Ireland while the axe fell on 850 staff at childrenswear chain Adams after administrators announced the closure of 111 stores.
As gloom descended on the high street, one of the country's leading business leaders said yesterday that ministers should put the UK's banks in an arm lock and force them to boost lending to cash-strapped firms.
Peter Hughes, chief executive of Scottish Engineering, said the UK Government needed to take drastic action to help tackle a shortage of credit that is hammering firms across Scotland.
Mr Hughes was furious that while the taxpayer has provided billions of pounds to prop up leading banks, and the Bank of England has slashed interest rates to 2%, the country's firms appeared to be waiting to see any benefit.
"It's the government that's bailed them out. It needs to use its influence with the banks to say get your fingers out and do something about it," he said. "They have got to get an arm lock on the banks saying if you don't do this we will order you what to do."
Meanwhile, Manchester-based retailer Passion for Perfume went into administration after cutting 194 jobs and Woolworths will shut its doors today for the final time with the closure of its remaining 200 stores, leaving 27,000 staff out of work.
Administrators are hunting for a buyer for Waterford Wedgwood after talks over a possible sale to a US private equity firm failed to bear fruit and its lenders' patience ran out.
The company will continue to trade as a going concern and chief executive David Sculley is "optimistic" a buyer can be found, yet question marks hang over the future of 1900 UK staff.
Adams administrator PricewaterhouseCoopers said yesterday's job losses were "inevitable" as stores were closed at locations including Glasgow and Leeds. The remaining 160 Adams stores will stay open while efforts are made to secure a sale.
In London, the Prime Minister told an economic forum his and not the Tories' way would see Britain emerge quicker and stronger from the recession, saying.
However, Conservative leader David Cameron yesterday labelled the downturn as "Gordon Brown's recession".
He also unveiled two new policy pledges: scrapping taxes on basic rate taxpayers' savings and increasing non-taxable income for pensioners by £2000 a year.
