Much of what you need to know about household debt can be explained by the grocers Stephen Blackman, RBS Economics MAS Conference, June 5 th 2014 External Version

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3 “Lidl discount supermarket plans to double UK stores” – “new era” BBC News Dec 2013 “Waitrose targets £15bn sales in 10 years” Telegraph Oct 2013

Meet Jane and Scott 4 They live in Dundee with their two young children 1 in 5 households (5 million) Earn £32,000 Pay £4,600 in taxes Receive £5,000 in child benefits Mortgage debt of £88,000 6 th richest household Spend 93p in every £1 on life’s essentials Income unchanged since 2004 Unsecured debt of £4,600 14p in every £1 of income is a cash benefit Source: ONS Tax and Benefit Data; ONS WAS; ONS Family Spending; ONS ASHE – all various years

Our productivity programmes in the UK still have huge potential, not least through the use of technology. Technological innovation isn’t going away

Globalisation isn’t going away … we source more than 60% of all clothing and 40% of other non-food items through the global sourcing office.

Big change in the jobs we do 7 Change in proportion of jobs since 2001 (%) Source: ONS LFS

Almost all UK private sector debt is held by households 8 UK private sector debt Source: BoE Bankstats (Excludes OFIs)

Home ownership rates are falling 9 Proportion of middle-income household buying with a mortgage (%) Source: ONS Tax and Benefit Data

Changes are affecting us all 10  Paul (40). 2 million households  Earns £16,000, receives no benefit  Unsecured debt of £8,100  Mark & Claire (40s). 2 million households  66p of every £1 of income is a cash benefit  Unsecured debt of £4,600  Sarah & Chris (30s). 3 million households  £64,000 after tax.  But having children may change fortunes  Unsecured debt of £4,750, mortgage of £120k Source: ONS Tax and Benefit Data; ONS WAS; ONS Family Spending; ONS ASHE – all various years

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