20 Nov 2010

British government adviser resigns after recession gaffe

8:49 am on 20 November 2010

A senior British government adviser has resigned after making controversial remarks about the recession.

Lord Young, a business adviser to Conservative Prime Minister David Cameron, said that, economically, the vast majority of people were better off than ever because of low interest rates.

The BBC reports Lord Young has committed one of the cardinal sins of politics - appearing out of touch and insensitive.

After the worst recession in a generation, Lord Young said the vast majority of people had never had it so good.

He also played down the impact of forthcoming cuts in public spending, by saying that people will wonder what all the fuss was about in the years to come.

It is a highly sensitive issue, as Mr Cameron's government has been working hard to present itself as deeply caring.