Mortgage Slowdown Sign Of Economy Heading For Rockier Times - Cable

12.21.00pm GMT Mon 29th Oct 2007

Acting Leader of the Liberal Democrats and Shadow Chancellor, Vince Cable MP

Commenting on new Bank of England figures which show that mortgage approvals have fallen by a fifth over the last year, Acting Leader of the Liberal Democrats and Shadow Chancellor, Vince Cable MP said: "After a decade of often unsustainable borrowing, the slowdown in this housing market shows that the British economy is heading for rockier times.

"Labour has presided over an economy built on easy credit. It is hardly surprising that people are now feeling the pinch of higher interest rates.

"Throughout Gordon Brown's tenure as Chancellor, and now as Prime Minister, he has recklessly allowed banks to engage in ever more reckless lending to drive growth.

"By not including house prices in inflation figures, Gordon Brown ensured that interest rates would remain artificially low. This along with irresponsible lending practices from banks has created an economy which is now creaking at the seams.

"The Government must act now to curb irresponsible lending practices if the economy is to have a soft landing rather than a crash."