Trading conditions on Britain's high streets are the worst for 16 years. Consumers are being put off by high inflation and other worries about the economy and there have been recent profit warnings from companies such as Dixons, Mothercare, Carpetright, Halfords, HMV and the Home Retail Group.
Heather Stewart hears from the Guardian's retail expert Zoe Wood and is joined by Richard Dodd of the British Retail Consortium. They assess the immediate future for one of Britain's most vital industries.
Also this week: Standard & Poor's warned that there was a one in three chance that it would downgrade it's AAA-rating on US debt. The surprise announcement was leapt upon by other analysts who were quick to point out S&P's record in grading dubious financial instruments before the market crash. The Guardian's financial editor Nils Pratley says that there is unlikely to be much progress on deficit reduction until after next years US election.
And finally we investigate the gaping hole in the budgets of hundreds of British charities. Many enjoyed heavy subsidies from the public purse prior to the recession but as council budgets are slashed, so too are those in the charitable sector. The editor of SocietyGuardian, Patrick Butler, calls it a "perfect storm" as funds are cut at a time of growing demand for the services charities provide.
Joining the discussion in the studio are Maggie Jones of Children England and Annachiara Marcandalli of Cambridge Associates, a consultancy working with several charitable trusts. Many in the sector, including some of the country's oldest, are now facing agonising choices about whether to invest for future generations or use funds for much-needed services now.
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