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Debt is 'essential' to the UK, economist claims

8 January 2014 Last updated at 11:06 GMT

Debt should be seen as 'essential' to the UK economy, a senior economist has claimed.

Chris Williamson, chief economist at research firm Markit, says that in order for the economy to grow healthily, businesses need access to finance.

However he warned that loans should only be used for "needed investments" and not for "wants".

Mr Williamson told BBC Radio 5 live's Wake Up to Money: "The problem is when credit lending standards get relaxed too much and you start lending to either the wrong people... or for the wrong purposes."