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Vince Cable: Bank of England action on bad loans shows "economic storm is brewing"

June 27, 2017 1:08 PM

Vince Cable has warned that an "economic storm is brewing", as the Bank of England has ordered banks to beef up their finances against the risk of bad loans.

The Bank also said that it was looking at the risks to financial stability posed by the Brexit negotiations, including leaving without a deal in place.

It comes as a survey has found UK consumer confidence has plunged to its lowest level since the aftermath of last year's Brexit vote.

Liberal Democrat Shadow Chancellor Vince Cable commented:

"Our economy's reliance on consumer spending, fuelled by debt, was always unsustainable. Now consumer and business confidence are falling as the reality of a hard Brexit becomes clear.

"The Bank of England is forcing banks to prepare for tough times ahead, but there is only so much it can do to mitigate the economic impact of Brexit.

"It is up to the government to change course and protect people's jobs and living standards by keeping Britain in the single market and customs union.

"Unless Theresa May agrees to work with other parties and soften her approach to Brexit, she will have to take responsibility for the inevitable economic slowdown ahead."


Notes:


The Bank of England has forced banks to find a further £11.4bn in the next 18 months to beef up their finances against the risk of bad loans

A poll by YouGov has found consumer confidence has hit its lowest level since the aftermath of last year's Brexit vote