However it was announced today that the trade gap has increased from £7.6bn in October to £8.3bn this month.

This is the highest deficit since the records began in 1697.This came as a shock as economists previously forecast a reduction in the gap this month to 7.5bn.

The weak pound should have decreased the amount imported as it had become more expensive for the consumer in the UK to do so. In addition with a predicted increase in exports as it is cheaper for consumers to imports our goods in other countries.

This news comes as the Government ready a plan to avoid this recession becoming a deep depression. This puts further pressure on the Bank of England as there reduction in interest rates caused the weakening of the pound, which seemingly had little effect.

Hetal Mehta, senior economic advisor to the Ernst & Young ITEM Club stated, “The impact of weaker sterling is being completely dwarfed by a collapse in world demand, but given the extent of the depreciation in the pound in the past few months, today’s figures showing such a significant widening of the trade gap are hugely disappointing,”

This issue is exacerbated as demand is falling in the UK's export markets and as the pound strengthens against the Euro and Dollar the deficit in the Balance of Payments, however in this global struggle nothing is a certainty.