15 Most Recent Stories From Liberal Democrats : The Economy News Feed

Fri 5th Sep 2008:

Huge dividends to energy shareholders wrong while hiking up prices - Clegg.

Commenting on today’s [Friday] LGA report, which shows that energy firms gave dramatically increased pay-outs to shareholders last year, Liberal Democrat Leader, Nick Clegg said: "There is something seriously wrong when energy companies are giving higher and higher pay-outs to their shareholders while hiking up prices for their customers. "I’ve no objections to shareholders benefiting from the success of their companies, but public consent is equally important for the long-term future of any business. "That is why it would be in shareholders’ own interests not to pocket these dividends now whilst millions of families are facing such an uncertain winter. "The most vulnerable customers must be protected, which is why we have said the energy companies must be forced to invest in insulating the homes of their poorest customers. We welcome the fact that the LGA shares our view."

House price fall shows stamp duty cut to be pointless - Oakeshott.

Commenting on the steep drop in house prices revealed by Halifax today, Liberal Democrat Treasury Spokesperson, Lord (Matthew) Oakeshott said: "With house prices falling by 1.8% in the last month, the Government’s pointless 1% stamp duty cut will be wiped out in just 16 days for home buyers. "Trying to prop up a market in free fall only prolongs the agony. What matters now for first time buyers, and for unfreezing the market, is that house prices get back to affordable levels as soon as possible. "First time buyers must not be sucked into negative equity by Government stunts. "The Government must give councils and housing associations the freedom to build and buy more homes to rent."

Government has surrendered to big energy firms' blackmail - Clegg.

Commenting on reports that the Government has delayed announcing plans on how energy companies should allocate resources to help those in fuel poverty, following pressure from a number of the ‘Big Six’ utilities firms, Liberal Democrat Leader Nick Clegg said: "It looks as if the Government has surrendered to blackmail by the big foreign-owned energy firms. "The behaviour of these companies is unacceptable: first they receive a massive £9bn subsidy through the EU emissions trading scheme; then they line up to clobber customers with crippling price hikes; then they do all they can to scupper a deal aimed at helping the most vulnerable. "The energy companies must now be forced to use the bulk of the £9bn subsidy to finance a programme of mass home insulation, proper social tariffs for the most vulnerable, and the installation of smart meters. "This is a genuine matter of life or death for thousands of Britain’s most vulnerable people. Gordon Brown should display some of the courage he so much admires in pushing for a deal which will get them through the winter."

OECD rains all over Brown's relaunch - Oakeshott.

Commenting on the OECD’s prediction that the UK will fall into recession during the second half of this year, Liberal Democrat Treasury Spokesperson, Lord (Matthew) Oakeshott said: "It never rains but it pours for Gordon Brown. While the highly respected OECD is claiming that Britain is in recession, the Prime Minister admits he doesn’t even know where the money for his misguided £600m stamp duty suspension will come from. "Other big economies are forecast to recover but the OECD says Britain is worst placed of all because of its falling house prices. "British families are now paying through the nose for Gordon Brown’s complacency, which has allowed house prices and debt to get out of hand. "Alistair Darling, like the OECD and the Bank of England, has told the truth about our economy. Gordon Brown must back him or sack him."

Tue 2nd Sep 2008:

Government trying to bribe people to buy houses in falling market - Clegg.

Gordon Brown’s proposals to deal with the economic slowdown are too little too late the Liberal Democrats said today. The party has published its own package of proposals designed to help people left struggling by the credit crunch. The Liberal Democrat measures include tax cuts for low and middle income households, stopping unnecessary repossessions, action to cut energy bills and moves to stop reckless banks jeopardising economic security. Commenting, Liberal Democrat Leader, Nick Clegg said: "Gordon Brown has produced a plan to save his job, not help people struggling with the credit crunch. "If the Prime Minister really wants to help people on low and middle incomes he could take the simple and obvious step of cutting their taxes, releasing billions of pounds to boost the economy. "Under Labour, the poorest are feeling the pain of Gordon Brown’s legacy as Chancellor, while the richest take advantage of numerous loopholes to avoid paying their fair share. "The Government’s response is to try to bribe people into buying houses in a falling market. The last thing vulnerable first time buyers need is Gordon Brown sucking them straight into negative equity with the housing market in free-fall. "The Liberal Democrats have consistently called for more help for those threatened with repossession, cutting energy bills and stopping irresponsible behaviour by banks. It is a pity that Gordon Brown only wakes up to the problem when his own job is under threat."

Darling must act to prevent waves of repossessions - Cable.

Commenting on today’s Bank of England figures, which show new mortgage approvals fell by 71% over the last year, Liberal Democrat Shadow Chancellor, Vince Cable said: "The housing market is clearly plummeting. "This drop in mortgage lending is due, in some part, to Alistair Darling’s dithering over an irresponsible stamp duty ‘holiday’. "Millions of families are struggling to make ends meet, faced with the twin menaces of rising energy and food costs. Ever-increasing numbers are slipping into negative equity and unable to afford their mortgage payments. "The Chancellor must not attempt to artificially prop up the market for political expediency, but instead act to prevent a repetition of the waves of repossessions last seen in the Tory recession of the 1990s. "With the housing market in freefall, it is up to the Government to provide the parachute for families facing homelessness. Instead all we get is hopeless indecision."

Mon 1st Sep 2008:

Energy price rises devastating blow for millions - Clegg.

Commenting on today’s announcements by Scottish Power and Npower of steep rises in their gas and electricity prices, Liberal Democrat Leader, Nick Clegg said: "This will be a devastating blow for the millions of people who will struggle to heat their homes this winter. "It is disgraceful that the major energy companies are lining up to clobber customers with enormous price rises. "On this Government’s watch, these companies have benefited from a £9bn windfall, yet they continue to turn the screws on people who are already struggling with high prices. "Energy companies must be forced to put some of this money back into insulating the homes of their poorest customers."

Government must act to prevent homelessness due to repossessions - Cable.

Commenting on today’s Land Registry figures showing the first annual fall in house prices since their monthly records began over seven years ago, Liberal Democrat Shadow Chancellor, Vince Cable said: "The housing market is clearly in freefall. "Although painful, this correction in house prices is necessary to redress the bubble-fuelled increases of recent years. "Hundreds of thousands of people are facing negative equity, twinned with the squeeze of rocketing energy and food costs. "With repossessions already soaring it is essential that the Government acts to prevent the widespread homelessness last seen in the Tory recession of the 1990s."

Local taxpayers bearing brunt of Government's broken promise - Goldsworthy.

Commenting on Exeter City Council’s decision to charge people for putting the wrong kind of waste in their green recycling bins, Liberal Democrat Shadow Communities and Local Government Secretary, Julia Goldsworthy said: "Ministers have reneged on their promise to reinvest landfill tax in local recycling schemes. "If this money was getting to councils, recycling schemes could be made simpler and more waste could be collected. Instead, councils are having to take extreme measures and introduce complicated schemes. "This has left local taxpayers that want to do their bit and recycle bearing the brunt through confusing schemes and financial penalties."

Thu 28th Aug 2008:

Nationwide figures highlight seriousness of housing crash - Cable.

Commenting on today's Nationwide figures showing that house prices have fallen by 10.5% since last August, the first double-digit fall since 1990, Liberal Democrat Shadow Chancellor, Vince Cable said: "House prices are no longer simply falling, they are crashing. "Compared with other forecasters, Nationwide is usually conservative in its predictions of house price falls. So when it tells us there is a big fall, we know something very serious is happening. "All the signs are that we are at the beginning, and not the end, of a very painful process. "With this big drop in house prices, it is likely that around 300,000 people are already in negative equity. If this continues over the next year this number will quadruple. "Negative equity is a particular problem for the growing number of families who find themselves in serious danger of repossession because they are no longer able to make ends meet. "Rather than dithering over crackpot schemes to prop up the housing market, the Government must act to help the many thousands in danger of losing their homes. "The Liberal Democrats have set out plans to rebuild Britain’s seriously depleted stock of social housing and stop a flood of repossessions by helping families in arrears stay in their homes."

Stamp duty indecision has caused worst of all possible worlds - Cable.

Commenting on today’s moveme.com survey which shows that 80% of homebuyers are putting back their moving date in case the Government introduces a stamp duty holiday, Liberal Democrat Shadow Chancellor, Vince Cable said: "The Government has created the worst of all possible worlds. "Not only is a stamp duty holiday a ridiculous policy, amounting to little more than a bribe to push first time buyers into a falling market, but the uncertainty created is causing the already slowing housing market to grind to a complete halt. "In these difficult times we need a Government which will provide strong leadership. Instead all we get is hopeless indecision. "Ministers should concentrate on helping the many thousands of families on the brink of repossession, rather than pursuing expensive crackpot schemes to prop up the housing market."

Welfare system under strain as workless households rise - Willott.

Commenting on today’s ONS statistics which reveal the number of working households has dropped while the number of out of work single parents has risen in the last year, Liberal Democrat Shadow Work and Pensions Secretary, Jenny Willott said:"These figures paint a sobering picture of the mounting unemployment problem that will put extreme pressure on our welfare system. "The number of working households has slumped for the first time under this Government and the number where at least one adult is out of work is at a ten year high. "We need a simple, fair and effective welfare system that provides tailored support to help people get back into work. But the Government’s new welfare reform proposals could stifle the innovation and flexibility needed to achieve this."What’s more, these proposals do little to reduce complexities of the benefit and tax credit systems which leave millions missing out on the support they are entitled to."

Tue 26th Aug 2008:

Charles Bean's remarks highlight state of the economy - Cable.

Commenting on remarks by Charles Bean, the Bank of England's deputy governor, that the financial slowdown could ‘drag on for some considerable time’, Liberal Democrat Shadow Chancellor, Vince Cable, said: “Charles Bean’s comments highlight the fact that the British economy is to a large extent in freefall and there’s not a great deal the Government or the Bank of England can do about it.“Ministers need to focus their efforts on protecting those at greatest risk from the worsening economic situation. That means greater support for people living under the threat of having their homes repossessed and helping the large number of vulnerable people who will be hit with huge energy bills this winter.”

Credit crunch and soaring bills having massive impact on families - Cable.

Commenting on today’s [Tuesday] U-Switch report which shows that household disposable income has fallen by a sixth in the last year alone, Liberal Democrat Shadow Chancellor, Vince Cable said:"The credit crunch and soaring consumer prices are clearly having a massive impact on British families. "This is extremely worrying news for Gordon Brown, whose claims that all is well with UK PLC are now looking well wide of the mark."The Government cannot possibly continue to play down the severity of the economic crisis the UK faces, when millions of people can barely make ends meet."One in seven adults are now trapped below the poverty line, leaving the Government’s poverty strategy in tatters."Gordon Brown needs to wake up to the reality that we are now teetering on the brink of recession. He must act to help the millions of families struggling against high taxes, rising bills and falling disposable income."

Economy has reached stagnation - Cable.

Commenting on today’s revised ONS figures showing that the UK economy didn’t grow at all in the second quarter of 2008, Liberal Democrat Shadow Chancellor, Vince Cable said:"We now have official confirmation that the British economy has already reached the point of stagnation. Any further slowdown and we’ll be in outright recession. "All the evidence is that the economy is still slowing, dragged down by the falling housing market and sky high food and fuel prices. This high inflation will make it very difficult for the Bank of England to cut rates in the near future. "We’re now seeing the full extent of the self-delusion which led ministers to believe that everything was well with the British economy."

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