A TORY candidate has called on the Prime Minister to resign over the state of the economy.

Stuart Penketh, the parliamentary candidate for Ellesmere Port & Neston, made the demand following the news Britain is now officially in recession.

Mr Penketh explained: “This is the man who for 10 years as Chancellor of the Exchequer said he had abolished boom and bust.

“And yet now we are seeing unemployment figures almost reaching two million.

“Money traders are saying they will not be touching the pound and figures published last Friday showed the UK had seen the biggest drop in growth in 20 years in the last three months of 2008.

“So how is this going to help our manufacturing industry which Ellesmere Port relies on?

“Gordon Brown seems to be running around without any support from the international stage for his return to Keynesian economic policies.

“Labour is wasting billions of pounds on failed policies and markets are fast losing confidence in Mr Brown.

“So far the crisis is deepening and we haven’t achieved the one key objective to get the banking system working normally again.”

Mr Penketh also said that, according to the BDO Stoy Hayward Small Business Survey, up to 50% of small business will fail in this recession.

He added: “Mr Brown seems to be fiddling whilst the economy burns.

“As long as this Prime Minister remains in charge of the country’s economic policy we stand no chance of confidence returning and the economy improving.

“He should do the honourable thing and either resign or call an immediate general election.”