Shadow Chancellor John McDonnell vows to cut interest payments on debt-laden Brits – but it could cost the City £13bn
McDonnell will outline plans to bring credit cards into line with current rules on payday loan firms.
SHADOW Chancellor John McDonnell declared war on banks last night by vowing to cap interest payments on debt-laden Brits.
Mr McDonnell will today outline plans for a 100 per cent ceiling for three million owing on average £3,464 in a move that could cost the City £13billion.
The plan, in which someone borrowing £1,000 would pay back no more than £2,000 in total, would bring credit cards into line with current rules on payday loan firms.
It would also apply to in-store credit cards.
Labour claimed the initiative would eradicate “persistent debt” where, on average, people fork out £2.50 in interest and charges for every £1 repaid.
Warning consumer debt addiction is a “threat to our economy,” Mr McDonnell will tell the Labour conference: “If Tories refuse to act, the next Labour government will amend the law.”
Critics warned a cap would push up banking costs for those with finances in order.
Mr McDonnell also called for the 6.1 per cent student loan interest rate to be cut.
JEREMY Corbyn’s brother has been blocked from joining Labour - because his views are too controversial.
Climate change denier Piers Corbyn quit the party in 2002 but applied to rejoin Southwark Labour party earlier this year.
And it was Jeremy who had to break the news to him. It was also revealed that Mr Corbyn’s wife Laura Alvarez, 48, him to quit as leader before the election.
A source said she had now accepted he’s there to stay and “is enjoying things a bit more”.
