All nine members of the Bank of England's monetary policy committee voted to raise interest rates to four per cent this month, underlining the strength of the support for gradually increasing the cost of borrowing.

Party Response: Liberal Democrats

Vince Cable MP, Liberal Democrat Treasury spokesman, said: "Today’s minutes show that a major reason for last month’s interest rate rise was the Bank’s concern about the rise in personal debt.

"The MPC continues to be torn between a fear of extending the credit boom and causing the credit bubble to burst.

"The house price bubble is fuelling the credit boom, and the Bank of England accepts house prices are based on irrational speculation. It is time for the government to take action to protect ordinary homeowners against irresponsible lending."

Forum Response: Institute of Directors

Graeme Leach, chief economist at the Institute of Directors, said: "The shouts from the Bank of England are getting louder.

"The Bank wants to change consumer expectations in order to slow household spending, house price growth and debt accumulation.

"If UK consumers listen and respond, interest rate rises may only need to rise another half point. If they refuse to listen, this economic cycle could get out of control."

Forum Response: Federation of Small Businesses

David Bishop, deputy head of Parliamentary Affairs said: "Britain's 1.6m businesses will be contributing £19bn to the public purse this year through business rates compared to the £18bn of council tax contributed by 22m householders. For this businesses do not get a vote, they do not get a say in how councils are run and in many cases they do not even get their refuse collected for free. Some difficult decisions need to be made on local government finance but small firms must not be seen as an easy way out."