UK government accused of failing to control consumer debt
The UK government has today come in for severe criticism from a committee of MPs who have highlighted issues regarding consumer debt and the UK government's inability to tackle this problem. A number of projects have been introduced by the Department for business costing around £600 million since 2004. However, despite the fact that significant money has been invested in the area of controlling consumer debt, total consumer debt in the UK has risen from £1 trillion to £1.4 trillion in just six years.
These debt figures are absolutely enormous and there is serious concern that many consumers in the UK could be paying off their substantial debts for many years to come. The report also suggests that the UK government has failed to monitor the impact of various initiatives and is therefore unable to confirm the level of assistance getting through to those in real need. While it is easy to suggest that the UK government has made mistakes the fact is that consumers have taken on debt of their own accord and any blame in this area should in reality be spread amongst various parties.
Many observers will point to the recent boom years during which credit was very easy for many people to obtain. This was despite the fact levels of debt being taken on may not have directly complemented consumer income streams or their assets. In simple terms, many people were allowed to take on debt which they would struggle to pay-off.
Share this..
Related stories
UK government to merge Northern Rock and Bradford & Bingley loan books
Today the UK government received approval for its intervention which effectively prevented the collapse of the Bradford & Bingley back in 2008. The European Commission has today confirmed that the UK government acted within the rules and regulations and has been given the go-ahead to restructure what is left of the Bradford & Bingley operation, i.e. the company's loan book. So what plans has the g...
Read MoreNet lending to businesses falls again
A report by the Bank of England has confirmed what many in the business arena already knew with net lending to businesses contracting by £2.5 billion in July following a £3.2 billion reduction in June. This has resulted in the slowest annual rate of increase for almost a year and when you also take into account the fact that the Bank of England's M4 money supply figure fell by 0.2% in August, le...
Read MoreCould Greece default on its sovereign debt?
Amid concerns that the European debt markets are still struggling with liquidity issues and problems regarding specific economies such as Greece, Spain, Italy and Portugal there are fears that we could see an EU member state default on sovereign debt in the short term. Those who believe there will be a default are pointing the finger Greece despite the fact that the country has received a massive...
Read MoreNew wave of refinancing proposals hit the City
While at the moment the likes of Lloyds bank and Royal Bank of Scotland are grabbing the headlines with regards to refinancing proposals, we are starting to see many other companies looking towards the stock market and the money markets to refinance their debts and rebuild their balance sheets. However, this is coming at a time and UK banks are reluctant to push more liquidity into the marketplace...
Read MoreCattles issues update on possible write-downs
In what is basically a third profit warning in just a few weeks it has been revealed that sub-prime lender Cattles is on the verge of crystallising an £850 million write-down. The company has blamed a breakdown in its internal controls for the situation which will see £700 million written off for loan impairments over the last two years and a further £150 million for future expected impairments...
Read More