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19/11/2010
Lord Young Quits Over Recession Gaffe
The Prime Minister's Adviser has resigned after he told a newspaper many Britons had "never had it so good" despite a "so-called recession".
A spokesperson for Prime Minister David Cameron said his resignation had been accepted.
Lord Young of Graffham was noted as saying the Bank of England's decision to keep the base rate at a record low of 0.5% since March 2009 had left many homeowners up to £600 a month better off since the start of the "so-called recession".
Regarding the statement, the Prime Minister told reporters that his adviser has apologised and was "extremely embarrassed", although he is believed to be "furious" over Lord Young's remarks.
The Prime Minister said: "I mean, he's not a member of the Government, he doesn't speak for the Government and I think he'll be doing a bit less speaking in the future.
"He should get on with what he has been doing and he was obviously extremely embarrassed and he was very quick to retract completely what he said."
As Labour called on the Prime Minister to sack him, Lord Young submitted a letter to the PM to "apologise profoundly" for his "inaccurate and insensitive" statements.
Speaking to a newspaper, the former trade and industry secretary, who served in Margaret Thatcher's government said: "For the vast majority of people in the country today, they have never had it so good ever since this recession - this so-called recession - started...
"Most people with a mortgage who were paying a lot of money each month, suddenly started paying very little each month.
"That could make three, four, five, six hundred pounds a month difference, free of tax. That is why the retail sales have kept very good all the way through."
Lord Young added: "If you actually look at the cuts after four years we will be back with Government spend(ing) the same as it was in '07. Now, I don't remember in '07 being short of money or the Government being short of money.
"So, you know, I have a feeling and a hope that when this goes through, people will wonder what all the fuss was about."
After the comments were published, the Prime Minister's adviser said: "I deeply regret the comments I made and I entirely understand the offence they will cause.
"Low mortgage interest rates may have eased the burden for some families in this country.
"But millions of families face a very difficult and anxious future as we come to grips with the deficit.
"I should have chosen my words much more carefully."
Labour's Shadow Chief Secretary to the Treasury, Angela Eagle, accused Lord Young of failing to appreciate the "hardships" many people are going through.
(BMcN/CD)
A spokesperson for Prime Minister David Cameron said his resignation had been accepted.
Lord Young of Graffham was noted as saying the Bank of England's decision to keep the base rate at a record low of 0.5% since March 2009 had left many homeowners up to £600 a month better off since the start of the "so-called recession".
Regarding the statement, the Prime Minister told reporters that his adviser has apologised and was "extremely embarrassed", although he is believed to be "furious" over Lord Young's remarks.
The Prime Minister said: "I mean, he's not a member of the Government, he doesn't speak for the Government and I think he'll be doing a bit less speaking in the future.
"He should get on with what he has been doing and he was obviously extremely embarrassed and he was very quick to retract completely what he said."
As Labour called on the Prime Minister to sack him, Lord Young submitted a letter to the PM to "apologise profoundly" for his "inaccurate and insensitive" statements.
Speaking to a newspaper, the former trade and industry secretary, who served in Margaret Thatcher's government said: "For the vast majority of people in the country today, they have never had it so good ever since this recession - this so-called recession - started...
"Most people with a mortgage who were paying a lot of money each month, suddenly started paying very little each month.
"That could make three, four, five, six hundred pounds a month difference, free of tax. That is why the retail sales have kept very good all the way through."
Lord Young added: "If you actually look at the cuts after four years we will be back with Government spend(ing) the same as it was in '07. Now, I don't remember in '07 being short of money or the Government being short of money.
"So, you know, I have a feeling and a hope that when this goes through, people will wonder what all the fuss was about."
After the comments were published, the Prime Minister's adviser said: "I deeply regret the comments I made and I entirely understand the offence they will cause.
"Low mortgage interest rates may have eased the burden for some families in this country.
"But millions of families face a very difficult and anxious future as we come to grips with the deficit.
"I should have chosen my words much more carefully."
Labour's Shadow Chief Secretary to the Treasury, Angela Eagle, accused Lord Young of failing to appreciate the "hardships" many people are going through.
(BMcN/CD)
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