Prime Minister's question asked in the House of Commons, by Vincent Cable (Liberal Democrat). It was answered on Wednesday, 30 January 2008 on behalf of the Prime Minister.

Engagements

Question: After yesterday’s warning from the financial regulator that 1 million homes are at risk of repossession and that negative equity has returned, will the Prime Minister now admit that he was wrong and complacent in dismissing as scaremongering the warning from our Benches and others that his reckless boom, based on lending, was going to lead to bust?

Answer: It is nice to welcome the hon. Gentleman back. Even his own party may be pleased to see him back in the position of asking me questions. However, he has misunderstood yesterday’s Financial Services Authority report. The fact of the matter is that mortgage repossessions over the past four years are a fifth of what they were in the early 1990s, that mortgage rates have averaged 5 per cent. where they averaged 11 per cent. in the period before 1997, and that there were half a million people in negative equity under the Conservative Government. There are more home owners in Britain now than ever before. I hope that the hon. Gentleman will see on reflection that it is because we have a policy for low inflation, have maintained low interest rates, have rising employment and have avoided any quarter of recession in the past 10 years that we can tell people that we will steer them through the difficult times. That could not be said of any other party in the House.

Secondary information