Britian to face economic melt down

Britain was preparing for economic 'Armageddon' last night as the European Union warned the UK is at serious risk of a double-dip recession.

The toll of the turmoil in Europe to our economy was laid bare in a report which predicted the UK could slip into negative growth over the next six months – and economic forecasts were slashed for the whole of Europe.

David Cameron said the Treasury was planning for 'all eventualities' and warned eurozone leaders they have to act now or face a 'moment of truth' that will leave the world in a worse position than the 2008 credit crunch.