- Labour responds to consumer debt
figures, revealing the average Brit in 2030 will still be poorer
than the average American in 2000
With Bank of England debt statistics today show soaring consumer
debt, as individuals borrowed an additional £800 million in May,
Labour today releases a new analysis showing how the UK’s
economic prospects lag compared to other countries.
On current trends including today’s announcement, the average
Brit in 2030 will still be poorer than the average American was
in 2000 – or the average Norwegian was in 1996.
With figures today showing credit card borrowing increasing by
11.2% on the year and other consumer credit such as car finance
and personal loans rising by £400m, this adds to the worry that
without growth and stronger public finances, the British economy
will continue down a low wage, low living standards spiral.
Labour’s Shadow Chancellor said:
“Today’s figures show consumer confidence is at rock bottom as
growth and living standards continue to fall.
“That the average Brit in 2030 will be worse off than the average
American in 2000 tells you all you need to know about how the
Conservatives have mismanaged our economy.
“The low wage, low growth, high tax spiral we face needs more
than sticking plasters.
“We must secure our economy and make it stronger by getting
growth back on course, as the last Labour government did.”
ENDS
Notes to editors:
- Today’s Bank of England data
https://www.bankofengland.co.uk/statistics/money-and-credit/2022/may-2022.
- Analysis looks at gross domestic
product per capita, volume in USD, at constant purchasing power
parities to compare average output per person across different
countries over time.
- Under the Conservatives, the UK has
grown by 0.86% on this measure since 2010. If that rate continues
over the next seven years to 2030, output per head in the UK will
be $47.6k. In the year 2000, output per head on this measure in
the USA was over $48k.
- Data from OECD June Economic
Outlook, https://www.oecd-ilibrary.org/economics/data/oecd-economic-outlook-statistics-and-projections_eo-data-en.
