The Staggers

The New Statesman’s rolling politics blog

Cameron rewrites his speech

PM backtracks on household debt comments.

By George Eaton Published 05 October 2011 14:14

After his politically toxic and economically illiterate comments on household debt were roundly denounced this morning, it's no surprise that David Cameron has rewritten his conference speech.

The PM was due to say:

"The only way out of a debt crisis is to deal with your debts. That means households - all of us - paying off the credit card and store card bills. It means banks getting their books in order."

But he will now say:

"That's why households are paying down their credit card and store card bills."

Yet this revision creates a new problem for Cameron. If families are paying off their credit cards why is household debt forecast to rise from £1.6 trillion in 2011 to £2.1 trillion in 2015? The OBR's growth figures are based on the assumption that private debt will rise as the national debt falls (from 70.9 per cent of GDP in 2013-14 to 69.1 per cent in 2015-16).

And, politically speaking, the damage may be done. Ed Ball's statement that people don't need an "out of touch Prime Minister" lecturing them about paying off their credit cards will have resonated with many. This was political gold for Labour. How, some Tories will ask, did Cameron get it so wrong?

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Tags: David Cameron

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13 comments

Wed, 2011-10-05 14:31 — ThomasGC (not verified)

"How, some Tories will ask, did Cameron get it so wrong?"

Cameron is clueless.

Wed, 2011-10-05 14:34 — michael (not verified)

how long have we toput up with this lot then?

Wed, 2011-10-05 14:34 — Dave S1

In any case, if everyone does stop spending in order to pay off their credit cards etc... where exactly does that leave us?

Anyone got a paddle?

Wed, 2011-10-05 15:03 — Rick (not verified)

As someone who worked in PR has doesn't seem to know much about it. Still, if he was any good at it most people would think he's a dick.

Wed, 2011-10-05 14:38 — David (not verified)

What a complete idiot this man is. He needs to step down.

Wed, 2011-10-05 14:46 — Mat B (not verified)

Do we need any more evidence that privileged millionaires are probably not best qualified to speak to people about fiscal matters?

Wed, 2011-10-05 15:13 — Anton Jury (not verified)

Cameron rewrites his speech !

That title just about sums it up. It is all just empty words to David Cameron and that is it. If it sounds good, it will do.

The man is completely out of touch and lives in another dimension.

The Conservative Party Conference is just a Monkey's Tea Party for Pathological Liars.

Wed, 2011-10-05 15:24 — Adrian H (not verified)

Surely it's true though? Most of us could do with paying down some debt.

Our entire economy is built on consumer spending. The past decade has seen people being actively encouraged to spend well beyond their means through cheap credit.

The credit tap is turned off and now we have the current situation. It's inevitable.

Wed, 2011-10-05 15:32 — Stu (not verified)

This is tit-for-tat.. not merely as bad as Ed's speech or infact the entire Labour conference for that matter!

Wed, 2011-10-05 15:45 — Awake!

that revision was worth a mention on NS??? and the comments lol

Wed, 2011-10-05 15:48 — swatantra

What? Cats got his tongue?

James Ware (there is no English Republican Army)'s picture

Wed, 2011-10-05 17:19 — James Ware (there is no English Republican Army) (not verified)

If the Debt Relief orders are still there, tehn many households are better off defaulting on their credit cards while staying in employment and transferring tehir houses over to part own part rent or council properties if their local authority can buy them.

That tehn gives the local authority teh borrowing power on Uk internal gilt / bond markets for new affordable housing and to right to buy for those who haven't got credit cards and are in jobs with fixed rate mortgages

Wed, 2011-10-05 17:44 — Keithpp (not verified)

Household debt was due to rise from £1.6 trillion to £2.1 trillion under the plan in which growth was to exceed 2%. As we know growth has been revised downwards to 1.1% and so one would expect the growth of household debt to be greater than £2.1 trillion in a revised plan.

Cameron appears not to understand his own financial plan.

The Coalition plan is to increase debt over the planning cycle. Even if the plan is successful the reduction in the annual deficits will be less than the increase in household debt.

I waited in vain for this point to be raised on the BBC Radio Five at lunchtime when, once again, the Labour representative was outnumbered by 3 to 1.

The level of political debate is currently awful, how can this be challenged? Writing to an MP simply invites a smug political response.