Household debt is a ticking time bomb for the economy and a huge problem for families but the Chancellor refused to acknowledge this today when I asked him to acknowledge worrying household debt figures released recently.
Both the TUC and the Bank of England’s figures show that personal debt is increasing at worryingly fast levels; it grew 10.8%, to £192.2bn in the year to 30 November and the average household debt was a record high of near £13,000 in the three months to September 2016, even excluding mortgages.
Even the Bank of England voiced concern recently, that the UK was relying upon consumer spending rather than exports and investment to boost growth, which boded ‘poorly’ for the future
People across Salford and Eccles are some of the worst affected in Britain’s ever growing mountain of personal debt. With Brexit looming and all the uncertainty that comes with it, should interest rates rise in the coming months along with inflation, Salford residents may see their debts rise and cost of living increase. It’s a ticking time bomb in my opinion.
We need to be supporting Salford residents and our economy now more than ever, not unnecessarily increasing their debt and preventing economic growth at a local level.