more … ]]> Vince Cable has often used the analogy of an economic heart attack to describe the problems of the UK economy since 2008.

I’ve just got back into reading economist Richard Koo’s excellent book “The Holy Grail of Macroeconomics“ where he offers another analogy: the broken leg:

During a balance sheet recession, the problems resulting from too little fiscal stimulus are far more serious than those caused by too much. The latter are similar to walking with a cane even after a broken leg has healed; the former to walking, or even running, when the bone has yet to mend.

Richard Koo, The Holy Grail of Macroeconomics: Lessons from Japan’s Great Recession, Wiley Singapore, 2009, p. 67

Given the lousy state of our economy, the analogy seems all too apposite. The case is getting ever stronger for Vince’s Plan A+.

more … ]]> Vince Cable, Liberal Democrat Shadow Chancellor, visited Alresford on Monday, March 8, to meet local businesses.

Vince Cable and Martin Tod meet John Sole of Sole Butchers. (Photo: Alick Cotterill)

Accompanied by Liberal Democrat Prospective MP for Winchester, Martin Tod, Mr Cable visited the Alresford Gift Shop, both the town’s butchers – C.E. Evans & Son and Sole Butchers, the Alresford Builders Merchants and the Alresford Cobbler before finishing with a cup of coffee in Caracoli.

Mr Cable visited the town after speaking at a conference on the “Hampshire’s Road to Recovery” held at Intech.

Martin Tod commented:

It was great that Vince had the chance to meet local businesses and hear about how the recession has impacted them and also about the treatment they’ve been getting from the banks. Because we’re a relatively prosperous part of the country, some people assume that we’ve been unaffected, but that certainly isn’t the case for everyone. It’s vital that we get economic policy right if we are not to be thrown back into a deeper recession.”

more … ]]> Just over a week ago, I took a break from our one week holiday and went to the ITV Millbank studios to record an episode of ‘The Last Word’ for ITV Meridian.  The whole thing was shot in half an hour – we discussed Damian Green, the economy and the Queen’s Speech – and the attached is the result!

more … ]]> Further to my earlier blog post on British Gas, BBC Radio 4′s FileOn4 has reported on some of the other shenanigans the gas companies are getting up to.

According to the show:

Former Energywatch chief executive Allan Asher told BBC File On 4 that annual bills of around £1,200 could be cut by a third or more.

You can listen again and read more via the FileOn4 website or read a transcript of the programme here.

Updated on July 1, 2009 – podcast link no longer available

more … ]]> There’s been a lot of media interest in the problem of British Gas’s direct debit hikes.

Almost all the people who responded to my email survey were facing increases far above both the 35% reported in the press and the 42% increase for direct debit customers reported by the Telegraph. The average figure was 81%.

The dramatic increase in interest income from British Gas parent, Centrica plc, suggests this is a deliberate strategy – building up cash balances to make money on interest. Since 2006, the interest income declared in their accounts has gone through the roof – doubling from £40 million in 2006 to £83 million in 2007. Interest in their interim accounts for first six months of 2008 (£43 million) is 54% higher than the £28 million interest income reported for the first six months of 2007.

I’d be amazed if it was just a Winchester problem and am interested in finding out who else has the same problem. Please feel free to email me with details at martin@martintod.org.uk or use the form below.

cforms contact form by delicious:days

more … ]]> There’s been an alarming increase in mortgage repossession claims at Winchester Crown Court.

The Ministry of Justice published figures on August 15, 2008 showing that the number of mortgage possession claims between January and June 2008 at Winchester Crown Court were 68% higher than a year earlier. Possession orders were 15% higher.

The 60% year-on-year growth in mortgage repossession orders from April-June at Winchester Crown Court is the 8th highest increase in the country.

It’s an extremely worrying trend. We look set to see the highest level of repossessions at Winchester Crown Court for at least 10 years.

In essence, thousands of families around the country are now paying the price for the Government letting the economy – and banking regulation – get hopelessly out of control. With rising mortgage repayments as fixed interest deals expire and aren’t replaced – and sky high food and fuel costs, more and more people’s budgets are being driven to breaking point.

There is a lot of helpful advice available to people in financial difficulty – for example from the Citizens’ Advice Bureau – but it’s also clear that we need a change in the rules. If we are to avoid the mass repossessions of the 1990s, we need the Government to enforce a statutory code of practice which ensures that lenders only ever repossess as a last resort. This should not just apply to the big banks but also to the large number of secondary lenders who are using court action to pursue their debts in a very aggressive way.