Stella Creasy MP, Labour’s Shadow Business Minister, responding to the Government’s announcement on payday loans, said:

“Just two months ago this Government criticised Ed Miliband for wanting to reform broken markets, and now today we see them following Labour’s lead on the need to act against legal loan-sharking.

"Whether in Parliament or out on Britain’s streets in the Sharkstoppers campaign, we have been making the case that capping is a tried and tested method used in many other countries to tackle the problems caused by payday lenders. For too long David Cameron has ignored our pleas to act and it is cash strapped consumers caught in the spiral of debt these companies generate who have paid a heavy price as a result. 

"Labour is committed to caps on the total cost of credit and we know there’s still more to do to address the damage this toxic industry has done to the lives of millions. We want a levy on these companies to expand the funds available to credit unions so they can serve more people, powers for councils to limit the growth of these companies on our high streets and a ban on advertising to children of these products.

"That the Government is today admitting it got it wrong in opposing these measures and is still playing catch up on how to combat these problems shows it is Labour who have the ideas and determination to tackle Britain’s cost of living crisis."