Choppy Political Waters Ahead for the Credit Industry

Podcasts | 31/05/17

In the first of our new CCTA Podcasts, I talk politics with two Westminster heavyweights — The Spectator magazine’s Political Editor, James Forsyth, and former special adviser to both Tony Blair and Peter Mandelson, Patrick Diamond.

With only a week to go until polling day, James and Patrick are largely in agreement on the effectiveness of the parties’ campaigns thus far — unexpected progress for Jeremy Corbyn despite repeated gaffes over the cost of spending commitments; and major strategic mistakes by Theresa May that have undermined her reputation for leadership.  Despite these, Patrick and James still expect a solid Conservative majority come 9 June, though nowhere near the landslide numbers suggested by early polling.

On business and the economy, they identify competing pressures: Theresa May’s more Christian Democrat inclinations on the one hand, which favour a bigger state and more intervention in markets, and the harsh realities of Brexit on the other, which will structurally shift British politics to the Right and necessitate lower taxes and less regulation.

On credit and banking, James strikes a gloomy note and sees a clear political appetite for price capping in credit, banking and utility markets (and no political price for doing so).  Conversely, Patrick is less sure about the inevitability of further capping and suggests waiting to see who becomes Chancellor.

Next month, we review the election outcome and look in more detail at what the next five years will hold for the credit industry.

Click the ‘play’ button on the media player below and enjoy!
Greg Stevens
CCTA Chief Executive