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Isle of Wight Liberal Democrats

Vince Cable responds to UK debt crisis

October 18, 2017 4:29 PM
Originally published by UK Liberal Democrats

Vince Cable (Chris McAndrew [CC BY 3.0 (http://creativecommons.org/licenses/by/3.0)], via Wikimedia Commons)Vince Cable said:

"One in six of the population could not cope with even a modest rise in mortgage payments. Consumer credit is running at 10% a year. With the Bank of England predicted to increase interest rates, a recession could lead to repossessions and people defaulting on their debts. The danger is that this becomes a negative spiral.

"Half the population is now defined as being financially vulnerable, and real wages have fallen for six months in a row with inflation on the rise. And this is before the Conservatives have taken us out of the single market and customs union.

"It underlines the need to give people a breathing space for indebtedness in the short-term. It is depressing but not surprising that young people are shown to be the most indebted, reflecting the extent of inter-generational inequality.

"Yet Theresa May continues to talk about the strength of the UK economy. This is simply not the experience of many people in Britain today."