Household consumption will be pivotal in the resumption of growth, but consumer concerns about rising household debt may but the brakes on spending

Abstract

The Office for Budget Responsibility has recently suggested that household debt will rise sharply in the next four years, as households compensate for higher costs with greater borrowing. Gavin Kelly and Matthew Whittaker of the Resolution Foundation examine the impacts that higher levels of debt might have on consumer spending and thus the prospects for a growth-led recovery