PEOPLE in Worcestershire and across Britain face an “apocalyptic” scenario of bankruptcies, mass unemployment and personal insolvency, a top politician has warned.

Alan Duncan, Conservative shadow cabinet member for business and enterprise, gave the bleakest assessment yet of the British economy during a business breakfast on the outskirts of Worcester.

And he warned his audience that unemployment could soar past three million over the next year.

Mr Duncan said the current financial crisis is now transferring itself to the “real world” and predicted disastrous consequences for everyday people in the months to come.

He said: "We’re living in very, very difficult times and if you want my honest view, it’s that we ain’t seen nothing yet.

“We are, I think, looking at phenomena the world has never seen before with consequences that risk being as dire as the depression that followed the Wall Street Crash in the 1920s.”

Mr Duncan spoke of the likely impact the financial crisis will have on people’s lives over the coming year.

He said: “The collapse in liquidity is about to hit businesses and this is the phase which I think is about to hit us big-time.

“Most businesses need finance, they need something to assist cash-flow, or a loan for their next investment. If that dries up, the contraction that would ensue risks being absolutely apocalyptic.”

Mr Duncan described the current housing market as “dead” and warned “the prospects for unemployment are dire”, with the number of people out of work likely to soar well above the current 1.7 million level.

He said: “We could see it bursting through two-and-a-half (million) in months. We might even find a three at the beginning of it within a year.”

The Tory MP added that many people would face personal insolvency when their mounting credit card debts were called in by nervous banks.

Despite having stated beforehand that he “did not wish to play the blame game”, Mr Duncan made it very clear he believes fault lies with bankers “who forgot what the purpose of banking is supposed to be”, and a Labour Government which he claimed failed to prepare for the “inevitable” economic bust.

Neil Schofield, head of sustainable development with Worcester Bosch, was one of those in attendance.

“It certainly wasn’t happy listening,” he said.

“At Bosch we are relatively protected because people will always need boilers but it is obviously going to be a very difficult time for everyone.”

Politician takes tour of technology business

ANOTHER leading Conservative politician visited Worcester yesterday as the party continues to woo local voters.

Tory shadow cabinet member for business Alan Duncan spoke to business leaders from across the county in Wychavon, before being given a tour of one of the city’s top technology companies, Yamazaki Mazak, by Conservative Party candidate Robin Walker.

Mr Walker said: “Particularly in these difficult times, it’s good news to have the shadow business secretary visiting Worcester. Along with local businesses, I’ve been impressing on Alan the need to help and support manufacturing in the city.”

Mr Duncan’s trip to Worcester follows well-publicised visits by Conservative party leader David Cameron, shadow chancellor George Osborne and the party’s spokesmen for health and education.

Mr Walker said: “It’s good to know Conservative politicians are taking Worcester seriously and want to hear people’s views. This is the heart of the country but there’s a feeling we haven’t been listened to by Government for far too long.”