Doubts are already being raised about how effective the mortgage support scheme unveiled by Gordon Brown yesterday will be.

It was revealed during the debate on the Queen’s Speech that homeowners would be able to take a two-year mortgage holiday if one adult
in the household lost their job and that eight banks had already apparently signed up to the

Margaret Beckett, the housing minister, is being reported as having said that only 9,000 people were likely to benefit.

Dizzy has taken the Government to task on the issue this morning, whilst George Osborne is also far from emphatic in his support.

The shadow chancellor has told us:

"Yesterday, we discovered that 75,000 people are forecast to have their homes repossessed this year, near the peak of the last recession, so of course we need to do everything possible to keep people in their homes. We’ve been calling for action on repossessions for a year.

"As ever with Gordon Brown’s announcements we’ll need to look at the small print to make sure this doesn’t fall apart under scrutiny.

"Where we really need radical action is to keep people in their jobs, so we’re disappointed that the Government didn’t take up our proposal to get to the heart of the credit crisis and underwrite lending to businesses."

Jonathan Isaby

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