The upsides of recession: Young in trouble for focusing on silver lining
By politics.co.uk staff
David Cameron's senior aide David Young faces controversy once again this weekend for suggesting the recession could offer opportunities for some businesses.
The peer, a former Thatcher Cabinet minister, has already resigned for previous comments on the recession but was reinstated by the prime minister.
Young will publish a report tomorrow expected to outline recommendations on how small businesses could be helped by the coalition through the current period of economic stagnation.
"The rise in the number of businesses in recent years shows that a recession can be an excellent time to start a business," a part of the report leaked to the Observer newspaper states.
"Competitors who fall by the wayside enable well-run firms to expand and increase market share. Factors of production such as premises and labour can be cheaper and higher quality, meaning that return on investment can be greater."
His comments about "the economic gains of a recession" were met with anger by TUC general secretary Frances O'Grady, who said: "Not only is the government failing to deal with the living standards crisis, their advisers are revelling in the jobs and wage squeeze that is putting people's finances under strain."
Downing Street said Young's comments were "borne out by the statistics" and accused the TUC of misrepresenting the report to suit their political interests.
"This is yet more evidence of just how desperately out of touch David Cameron's government has become," Labour vice-chair Michael Dugher commented.
"Whilst millions of hard-pressed families are feeling the squeeze and the government gives out tax cuts for millionaires, Cameron's adviser seems to celebrate ?low wages for many in a recession.
"Once again the true face of Cameron's government has been exposed."