Rate rise heaps further pressure on family budgets - Cable

12.00.00am BST (GMT +0100) Thu 10th May 2007

Commenting on the rise in interest rates, Liberal Democrat Shadow Chancellor, Vince Cable MP said: "This rise will heap further pressure on families' budgets which are already being stretched to the limit.

"Unfortunately this is likely to lead to a further rise in repossessions and bankruptcies.

"For those coming off fixed rate mortgages that were fixed a couple of years ago, the impact of the last four interest rate rises will be especially hard to take.

"Thanks to the Government's failure to promote independent debt advice, many families who find themselves in difficultly will not know where to turn.

"The Government has seemingly washed its hands of the whole problem of personal debt. It has spent a lot of time regulating savings and investments, while ignoring irresponsible lending."