Bad economic news makes a recession more likely and a mockery of the prime minister's suggestions that people should seek to tackle their credit c…
Bad economic news makes a recession more likely and a mockery of the prime minister’s suggestions that people should seek to tackle their credit card debt, the Trades Union Congress (TUC) has said.
Speaking after the Office for National Statistics issued a revised estimate for gross domestic product (GDP) of only 0.1 per cent growth in the second quarter for this year – compared with the original figure of 0.2 per cent – Mr Barber said: “The economic news just keeps on getting worse.”
Attacking government policies, he added: “There is now a real danger of the UK going back into recession.”
Turning to suggestions made by David Cameron that people should be cutting their credit card debt, Mr Barber said: “Of course people should be sensible about paying back unsustainable debt, but the truth is that the government is relying on people borrowing more.”
As a result, this is advice that George Osborne “must be hoping” that cardholders do not heed, he stated.
The comments come after the passage in Mr Cameron’s original speech appearing to urge people to clear their credit card debt was re-written to indicate that people are doing just that after the original transcript sparked a debate about its implications for the economy and individuals.
Meanwhile, the GDP news was also picked up on by shadow chancellor Ed Balls as a reason to attack government economic policy, arguing that the increased taxes and cuts in spending have gone too far and have “killed the recovery”.
He accused the prime minister of “lecturing” hard-up consumers about paying off their cards at a time when many are struggling to make ends meet.
Posted by Paul Thacker