From the Telegraph article above:
To arrive at its conclusion that household consumption will by then be rising fairly robustly, the OBR makes a couple of very questionable assumptions – that to maintain spending and living standards, UK households will both reduce their savings rate and increase their borrowings.
Given that UK households are already the most indebted in the world, that's quite an ask. Dig down into the detail of the OBR forecasts and things look pretty frightening. Overall household debt rises from £1.62 trillion last year to £2.13 trillion in 2015, or from 160pc of income to an astonishing 175pc. In other words, consumption growth, a key part of the OBR's overall forecast for growth, is only maintained by taking on more debt.
And this comes from the Office for Budget Responsibility...
The Telegraph itself also showing responsibility....
As if all this were not sufficiently toxic a mix of anti-growth ingredients, the UK Government has thrown in a further dose of poison by determining to "do something about the banks". The radical structural reform being considered by the Independent Commission on Banking hangs like a pall over the entire sector at a time when the economy desperately needs to move on and begin the process of fuelling some decent private sector demand.
Even accepting that the ICB is right in its prescriptions for preventing future financial crises – and that's a big if - this is not the time to be pursuing the holy grail of risk free banking.
Now obviously, banking reform is necessary and not unique to Britain. The squeals coming out of New York over the Dobbs-Frank bill are just as loud as those we hear from the City. Yet in the US, there is a sense in which they've managed to put the banking crisis behind them. The public money has been repaid, dividends resumed, and the banking system has been substantially healed. In the UK, by contrast, everything is on hold while the ICB ponders how best to return finance to the stone age
Yes, the banking crisis is behind us, let's not "risk" putting any limits on banks casino betting operations.