Risk Waiver: Closing the protection gap and easing the flow of credit

Lending to UK consumers and businesses has stagnated over the last five years. The credit our businesses and households rely upon to prosper is simply not as available as it needs to be.

Recent polls illustrate that consumer confidence has been running at low levels since the recession and have remained stubbornly low since. This lack of confidence ultimately bears out in consumer spending levels, which are currently still 3.9 per cent down on pre-recession levels. Also, taken as an average, workers are in real terms earning no more than they were ten years ago. Given that consumer spending in total comprises 65 per cent of UK GDP, a relaxation of credit constrains would have a substantial impact on economic growth and household earnings.