There has been a conflict in Conservative Party economic policy for the last thirty years – between conservative values of frugality and the rise of personal debt.
Tag Archives: Debt
Payday lending has historically been referred to as fringe banking in the United States, but you couldn’t deny it’s anything other than big business today.
The latest public sector finances data, released today by the Office for National Statistics, show that public sector borrowing in 2012/13 was £118.8 billion when you exclude Quantitative Easing and Royal Mail pensions. Higher than in 2011/12, when it was £118.5 billion.
In the wake of changes announced by chancellor George Osborne last week on the amount at which a credit union can charge in interest for one of its loan products, Joseph Wright of Civitas has written a paper entitled Credit Unions: A Solution to Poor Bank Lending? exploring the industry and its rates.
Labour can make a compelling argument that the economic crisis in the UK was not principally its fault but the result of an international banking crisis with its roots in the US.
The payday lending industry punishes people for its own faults: they don’t carry out the correct credit checks then continue to charge borrowers excessive fees and interest on loans they probably couldn’t afford to begin with.
According to the latest ONS borrowing figures, the deficit for April was £6.3bn, around £2bn lower than expected. Public sector net borrowing for the previous year (2012/13) was revised down from £120.6bn to £119.5bn (compared to a deficit of £120.9bn in 2011/12).
As Ed Conway has noticed, if you exclude the effects of either Northern Rock asset reclassification or the profits of the SLS from today’s public sector borrowing figures, the deficit was actually higher this year than last.
Economic data is coming thick and fast. Sandwiched between last week’s poor unemployment data and Thursday’s forthcoming results for GDP in the first quarter of the year, public finance figures were published today. They show that George Osborne has dodged a bullet.
It was argued by Reinhart- Rogoff that high debt essentially meant that the state captured all resources, used them inefficiently, prevented the private sector using them and so curtailed growth at cost to everyone. There’s just one problem.