UK Politics

Conservative Party: Labour's legacy of debt

News   •   Feb 08, 2010 10:54 GMT

Official Insolvency Service figures show that under Labour the number of people who have gone bust is double the rest of recorded history.

Philip Hammond, Shadow Chief Secretary to the Treasury, described the figures as “a shocking indictment of Labour’s economic legacy”.

Before the third quarter of 1997, there were 400,000 personal insolvencies in England and Wales. B

But Conservative Party research shows that, under Labour, 800,000 people went bust – double the rest of recorded history. The IMF recently warned that the high level of personal debt in Britain could hold back an economic recovery.

This comes after recent Conservative Party analysis illustrating that more companies went bust during Labour’s recession than in any other downturn.

Philip said that Gordon Brown “encouraged people to borrow recklessly by claiming he’d abolished boom and bust”, leaving hundreds of thousands facing financial ruin.

And he added:

“Conservatives would protect vulnerable people through introducing a free national financial advice service financed by the financial services industry, a cap on store card interest rates and replace Brown’s discredited FSA with a new Consumer Protection Agency”.