With Britain About To Enter Recession, Brown Orders Halt On Repossessions

October 22, 2008 10:54 a.m. EST

London, England (AHN) - The United Kingdom is about to enter into a recession phase, British Prime Minister Gordon Brown admitted Wednesday.

Brown, who used the word recession for the first time, told the British Parliament, "The Governor of the Bank of England said last night that not since the first world war has the international banking system been so close to collapse and I agree with him... 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."

The prime minister said as difficult times lie ahead, the government will issue new guidance to the judiciary to help ease the problem of Britons whose homes are about to be repossessed.

"I can announce today new guidance for the judiciary to halt or adjourn court action on repossessions, unless alternative options that help the homeowner, including extending the terms of the mortgage, changing the mortgage type and deferring payment, have been fully examined first of all."

The guidance is expected to benefit almost 29,000 Britons who received possession orders during the second quarter of 2008, which is a 24 percent surge from last year.