Vince Cable responds to UK debt crisis

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Lib Dem victory over breathing space for debt.

Liberal Democrat leader Vince Cable has said that the FCA figures revealing the extent of the British debt crisis exposes the weakness in the UK economy.

The government has announced that it will be launching a consultation to explore the development of a way to provide individuals in debt with up to six weeks free from further interest, charges and enforcement action.

Vince Cable and Liberal Democrats in the Lords have been calling on the government to take action to create a breathing space for indebtedness.

Commenting Vince Cable, Leader of the Liberal Democrats, said:

“It appears the government has heeded my calls to fulfil its own manifesto promise and introduce respite for those in severe debt. As our economy begins to stutter and pay packets continue to fall, the temptation for cash-strapped families to rely on borrowing is likely to grow. A Brexit-related economic shock could push many of those households over the edge.

“That means protection is needed now, not several years down the line. The government must ensure that this initiative is not bogged down by endless delays, as is too often the case. Furthermore, the proposed maximum six weeks of respite should be reconsidered, given evidence from Scotland’s scheme that this is often not enough.

“More fundamentally, our economy must be rebalanced so that long-term investment, not debt-fuelled consumption, is the driver of our future growth. That means a coherent industrial strategy for every part of the country, and borrowing to invest in high quality infrastructure.”

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