OECD Warnings Must Be Heeded By Chancellor

5.51.03pm GMT Wed 30th Nov 2005

Responding to the OECD's 'Economic Outlook No. 78', published this morning, Vince Cable MP, Liberal Democrat Shadow Chancellor said: "This report indicates what many of us have been saying for a long time - the slowdown in GDP is as a result of weak consumer spending that coincides closely with the cooling of the housing market.

"It also highlights that when the Chancellor delivers the pre-Budget Report on the 5th December he will have to downgrade his ludicrously optimistic growth projections for this year.

"The report indicates that growth will have less momentum going forward. It is now imperative that the Chancellor stops blaming the slowdown on high oil prices and exports, and turns his attention to home-grown problems."

ENDS

Notes to editors:

Liberal Democrat 10 point plan to tackle personal debt:

House prices in the official measure of inflation.

Counter-cyclical policies on banks reserves.

Consumer Protection for mortgage payment protection insurance.

Clamp down on hidden charges in credit and store cards.

Action on non-income verified mortgages.

Greater debt pooling (e.g. Student Loans).

Curb on increased overdraft and credit limits without borrower consent.

More flexible Social Fund.

Adequate health warnings on credit promotion and advertising.

National roll out of independent advice centres, plus financial education in the national curriculum.

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