British economy 'falsely propped up'

Friday, April 9th 2010

The UK economy "is being falsely propped up" and it is expected to get far worse, according to one expert.

Ian Boden-Smyth, spokesperson for the UK Insolvency Helpline, explained there has been a 60 per cent increase in the amount of phone calls to the helpline over the past 18 months.

And banks are offering certain packages - such as interest-only mortgages - to "prop up" the economy, but this will not last.

"If things are going to fail, a sticking plaster for six months will only fix the matter for six months," Mr Boden-Smyth claimed.

The implications of this are that more Britons will be forced into repossessions and individual voluntary arrangements are likely to rise.

According to the Department for Business, Innovation and Skills - which published a report from the House of Commons Committee of Public Accounts - support for those suffering with debt was a "complete failure".

None of the arrangements under the scheme, which was launched in 2004, have worked, it was revealed - and 11 per cent of Britons are struggling with debt.