According to reports this morning, David Cameron will use his conference speech this afternoon to call on Britain’s households to pay down their debts. He will say that dealing with debt means not just paying down public debt but also “households – all of us – paying off the credit card and store card bills.” Such comments would go beyond the government’s existing argument about the importance of dealing with the public deficit to an argument that about reducing the UK’s levels of personal debt.
Cameron wants to reduce private debt – but when and how?
A rapid repayment of debt is a recipe for recession, not recovery.