Credit Crunch

The issue

Norfolk, like every other part of the country, is at present facing some challenges caused by the national economic downturn and the associated credit crunch. An increasing number of people are requesting help regarding mortgage payments, repossession rates are now at the same level as in 1990 and there are record levels of personal debt.

Investigative work that the Liberal Democrats carried out in May 2008 revealed to us that there is escalating demand for debt advice services in Norfolk: Norwich Citizens Advice Bureau was reporting a rise of 36% in debt related issues, an average client debt of £31,000 (excluding mortgage) and waiting times of up to 5 weeks for an appointment with free, independent debt advisers.

We acknowledge the good work that is already being undertaken across Norfolk by public and voluntary sector bodies such as the Citizens Advice Bureaux, which provide much needed financial advice services to local people, but are worried that extreme pressure on local demand means that many people may not be getting the advice and support that they need at this crucial time.

Our view

As Liberal Democrats we believe that councils have a key part to play in supporting local people through hard times. The County Council has an obvious role as the County's lead body on the development of the local economy. It is also home to the Trading Standards service, which takes action to combat loan sharks and it gives financial support to local debt advice services.

As a result of ongoing pressure from the Liberal Democrat group Norfolk County Council has reconsidered its contribution to helping people through the credit crunch. It has set up a new website to help people get debt and money advice and is providing some money management workshops in local areas. It is also considering doing some other things that might help local businesses.

But we would like to see the council go further to help support local people. We are worried about waiting times for impartial debt and financial advice and think that a boost to the financial contribution Norfolk County Council makes to this work could help more Norfolk people get back on their feet quicker.

The Council's new debt and money advice website itself admits that people looking for help may not get it quickly. One part of the website says: 'Do bear in mind that some of the organisations listed may have additional pressure on their resources at the moment which in some instances means you may have to wait for an appointment but any wait will be worthwhile.'

What we are doing about it

Back in May we formally asked the Council to take action in this area.

Read our council motion about debt advice. .

It is also thanks to Liberal Democrats that debates have taken place at the Council about what more it can do for local people through hard times and what the risks are for key local services. Without our insistence these key issues might never have been up for public discussion.

We are pleased that the Council has responded to our concerns by offering some more help via the website and workshops and other small measures but we still think it could do much more.

In February 2009 we lobbied the ruling Conservative administration to dip into their pocket to give Norfolk people and businesses more concrete help in these difficult economic times. The Council has subsequently pledged to grant a further £125,00 to the Citizens Advice Bureaux to help with debt management in the County