Households are now net borrowers first time in 30 years – John McDonnell
John McDonnell MP, Labour’s Shadow Chancellor, commenting on the Quarterly Sector Accounts figures published today by the ONS, said:
“These are deeply worrying figures. The fact that for the first time in 30 years households are now net borrowers, taking on more debt and seeing their incomes squeezed by inflation, while the savings ratio is at its lowest level since records began, should be setting off alarm bells in the Treasury.
“The Chancellor stubbornly refused to use the Spring Statement to help working families, but he must now reconsider his policy of inaction as households are clearly reeling from the effects of eight years of Tory economic failure – with real wages still lower than when the Conservatives first came to power in 2010.
“The next Labour government will end austerity, introduce a £10 per hour real living wage and cap interest on credit cards, to build a high wage, high skill economy of the future.”