Don't know whether this has been done or not - the government want us to live to our means, pay off our credit cards, loans etc etc, there'll be less cash around so how can they expect us to spend more to generate more revenue?
*May I point out here I don't live on credit.
If you're not in debt your not paying interest to the bank and therefore hopefully spending it on actual stuff (goods and services) which all helps the country grow.
Although like most things it's closing the stable door after the horse has bolted, you should be trying to pay off debt at the end of the boom years having taken it out in the recession and early boom to limit the downturn and fund growth. Hence Brown's assertion athat over the economic cycle government borowing should be zero. His downfall was not calling the top of the market or if he did, not hikeing taxes up during the second half of labours tennure which would have been the right thing. The problem with doing the right thing is it usualy makes you unelectable.
They want us to spend up on our credit cards BUT we did it too much so the banks had too much outstanding debt and not enough credit.. (not just with us btw). So when the sh*t hit the fan there wasn't enough cash.
They want us to pay our debts back so there's more actual cash in their pockets aka liquidity, for [s]when[/s] if the Euro goes tits up.