Commenting on today’s [26^th August] U-Switch report which shows that household disposable income has fallen by a sixth in the last year alone, Liberal Democrat Shadow Chancellor, Vince Cable said:

“The credit crunch and soaring consumer prices are clearly having a massive impact on British families.

“This is extremely worrying news for Gordon Brown, whose claims that all is well with UK PLC are now looking well wide of the mark.

“The Government cannot possibly continue to play down the severity of the economic crisis the UK faces, when millions of people can barely make ends meet.

“One in seven adults are now trapped below the poverty line, leaving the Government’s poverty strategy in tatters.

“Gordon Brown needs to wake up to the reality that we are now teetering on the brink of recession. He must act to help the millions of families struggling against high taxes, rising bills and falling disposable income.”