Oral question asked in the House of Commons, by James Clappison (Conservative). It was answered on Thursday, 26 October 2006 on behalf of the Treasury.

Debt Relief

Question: May I ask the Chancellor about debt relief and personal indebtedness at home? Is he worried that both secured and unsecured borrowing stand at record levels? At the end of August, a total of £1.247 trillion was owed.

Answer: I am happy to answer a question about domestic debt relief, if that is the reading of the question. The biggest guarantee that people will not find it impossible to pay their debts will be maintaining the economic stability on which the British economy has grown over recent years. It is only when interest rates get out of hand—they rose to 15 per cent. under the previous Government—that people are unable to pay their bills. The debt advisory services for people who have personal problems are greater than ever before. When people are up against loan sharks and those who exploit their indebtedness, they need the protection of Government measures to regulate the pensions, mortgage, insurance and loans industries, so the hon. Gentleman had better look at his party’s proposals to abolish that protection.

Secondary information