He also highlighted official figures showing the ratio between household debt and income had reached a five-year high, with forecasts suggesting it will hit 150% by 2022. McDonnell is planning for the Labour party to focus heavily on the question of household debt as part of its new year strategy. “The alarming increase in household debt at a time when wages are not keeping up with prices is creating the perfect storm for our economy,” McDonnell told the Guardian. “We are firmly on the side of working families, and are helping them keep more of what they earn. But the government also believes that, overall, households’ financial positions have improved since the financial crisis with interest payments as a proportion of income at a record low.

Source: The Guardian December 31, 2017 17:37 UTC