Lord Young tells Cameron 'I quit' after gaffe

The Conservative peer Lord Young of Graffham has resigned as an economics adviser to David Cameron after commenting that people hit by the recession “have never had it so good”.

The Prime Minister has accepted Lord Young’s resignation from the unpaid role, just hours after he said the Jewish peer would be “doing a bit less speaking in future".

Labour politicians criticised him for displaying "complete indifference” after the peer told the Daily Telegraph that “this so-called recession” had actually had a positive impact on some people.

He said this was “because anybody, most people with a mortgage who were paying a lot of money each month, suddenly started paying very little each month.”