Recession? Hah! The Spirit of the Blitz will carry us through 2009

With the pound falling, those overseas holidays will have to go on hold. But that's no bad thing if it means we'll see more of our beautiful home islands

(HF DAVIS/GETTY IMAGES)

All in all, it is clear that 2008 was not a good year to be an island. The British Isles have really begun to feel the full extent of the recession and we are expected to be among the worst-hit by the global downturn.

The people of the Channel Islands suddenly found this year that their money was not protected in the same way as their mainland peers', with many having lost their life savings when the Icelandic economy (another island) collapsed. And to add to all that, a sixth of the residents of the island of Sark found themselves unemployed two weeks before Christmas because their first democratic election was a little too democratic for some.

But we all know what happens when times get tough in Blighty, we start talking to each other on public transport and at the checkout, even in the South East. The Blitz mentality is a formidable psychological state and not one to be sneezed at for its beneficial effects on our wallets – by way of everything from personal resourcefulness and determination to clubbing together for the important things. It's not that we won't spend at all in 2009, it's just that we'll start to spend only on the stuff that matters. And then there's the island mentality itself – the tendency to overcompensate for our size and geographical isolation by deciding we are a bit special. (Which we are, by the way – I'm not taking part in this ridiculous tendency to apologise for it in case we offend someone. Anyone.)

There's also the small matter of the value of our currency. As of Friday, the British Pound was worth less than 1.5 US dollars and less than 1.1 euros. Forget parity, with the associated charges and fees, you are now more than likely to get fewer euros than pounds if you exchange money at many of the nation's airports. At Birmingham and Liverpool airports, for example, you'll get just €187 for £200, according to currency traders FairFX.com.

It's expensive to explore the world out there. But holidays are among the last things we give up when our disposable income drops, along with gym memberships and satellite TV subscriptions.

Add all these things together and it's clear that 2009 is going to be the year to be a little bit introspective, to stay where we are, which is lucky because these are beautiful islands.

Think about it; it all works wonderfully. The punishing levels of inflation that we've had to endure over the past year are set to drop off dramatically in the coming few months, thanks to the desperate cuts to the Bank of England's base rate, so everyday prices at home are going to fall. Even the price of petrol is on your side, or is at least distinctly more favourable than it was. The average petrol price dropped by almost 12 pence a litre last month, and is likely to remain low as economies around the world continue to fall off a collective cliff. You certainly won't be able to afford to move house in 2009, so why not bundle as many people as you can in the car – because a road trip is called for. All we need now is the weather.