Cameron furious over adviser’s recession remarks

Lord Young of Graffham apologised after telling the Daily Telegraph, that the 100,000 job cuts expected each year in the public sector were “within the margin of error” in the context of a 30 million-strong workforce.

Echoing the former Conservative Prime Minister, Harold Macmillan, in the 1950s, Lord Young told a reporter that the vast majority of Britons have “never had it so good” and said a cut in mortgage rates “since this so-called recession” had left most people better off.

Political Correspondent Cathy Newman writes: Lord Young is to quit as the Prime Minister's enterprise adviser, according to a senior government source.

Although Downing Street had earlier insisted he would stay, I understand he has now been asked to leave. It's thought he will quit before completing the report he is currently writing on small business.

The source said the prime minister had given him an 'almighty roasting'.

“For the vast majority of people in the country today they have never had it so good ever since this recession – this so-called recession- started.” Lord Young of Graffham

A spokesman for Mr Cameron said the Prime Minister was “very unimpressed” by Lord Young.

“The Prime Minister believes at this difficult time politicians need to be careful with their choice of words – these words are as offensive as they are inaccurate,” he said.

Lord Young, who was only appointed to his role earlier this month, has written a note of apology to Mr Cameron, acknowledging that his comments were “inaccurate and insensitive”.

Serious embarrassment

But the inflammatory nature of his comments has already caused Downing Street serious embarrassment.

Lord Young held a series of senior Cabinet post under Margaret Thatcher during the 1980s, including Trade and Industry Secretary and has been brought back by David Cameron as an enterprise adviser, working in the office next to the Prime Minister’s in Number Ten.

He said during a recorded interview over lunch with a Daily Telegraph reporter: “For the vast majority of people in the country today they have never had it so good ever since this recession – this so-called recession- started, because anybody, most people with a mortgage who were paying a lot of money each month suddenly started paying very little each month.

What will perhaps rankle most with Mr Cameron and the Chancellor George Osborne was Lord Young appearing to question latter’s warnings that Britain would be “on the road to economic ruin” without the swingeing cuts in his spending review.

“Part of the rhetoric was to protect the pound,” he said.

“The fact that we seemed to be going through such big cuts really meant that the pound was saved, so far.”

He added: “Of course, there will be people who complain, but these are people who think they have a right for the state to support them.”

Labour Treasury spokeswoman Angela Eagle called for Lord Young to be sacked, branding his comments “disgusted” and “insulting”.

“No wonder the Government has no plan for jobs and growth – the man that David Cameron personally appointed as his adviser on helping small businesses thinks that the loss of 100,000 jobs a year is no big deal,” said Ms Eagle.

‘Inaccurate and insensitive’

In a statement issued after details of his comments emerged, Lord Young said: “I am not a member of the Government and played no part in the spending review.

“I deeply regret the comments I made and I entirely understand the offence they will cause.

“They were both inaccurate and insensitive.

“Low mortgage interest rates may have eased the burden for some families in this country. But millions of families face a very difficult and anxious future as we come to grips with the deficit. I should have chosen my words much more carefully.

“I have tonight written to the Prime Minister to apologise profoundly for what I said.”