Slump may hit worse than pit closures

The economic recession may hit a Staffordshire town worse than the coal industry's collapse, it is claimed.

Rugeley has seen high street giants Woolworths close in recent weeks and more names may go in coming months.

Yesterday job losses were announced at JCB in Rugeley and it has recently emerged Armitage Shanks, which employs 300 staff at Armitage, near the town, is exploring the option of short-time working. And a number of town centre premises were vacant before the downturn hit.

Now councillors warn of tough times ahead for the people in the area.

District councillor Mick Grocott, also vice-chairman of the town council, said recent closures in the town centre were "devastating."

He said: "It is terrible what is happening to local businesses. We all know what happened at JCB, the workers voted to go on short-time working to at least keep an income coming in and protect each other. If people haven't got money in their pockets then shops are going to suffer.

"With Rugeley being a small market town, if we are not careful this economic downturn is going to have a bigger impact on our town than the closing of the pits did. The sooner we have a change in this country the better," he added.

Councillor Gordon Davies said the problem was affecting the "whole world" and would lead to increased unemployment across the UK. He said: "Anything we can do to put Rugeley forward then we must do it."

Rugeley shopkeeper Chris Collis, who runs gift store Especially For You, added: "These are very difficult times and the Government is not helping at all.

"The 2.5 per cent VAT cut has made no difference at all to the economy."

Councillor Tony Williams said the media is talking the country into recession. He said: "There are positive stories out there so let's see them in the Press.

"If we keep talking recession then it is going to get worse and worse."