Lord Young resigns following recession gaffe

He told the Daily Telegraph: "For the vast majority of people in the country today they have never had it so good ever since this recession - this so-called recession - started, because anybody, most people with a mortgage who were paying a lot of money each month, suddenly started paying very little each month. That could make three, four, five, six hundred pounds a month difference, free of tax."

He also claimed that in 30 years people would look back on the Government's spending cuts and "wonder what all the fuss was about".

Downing Street described his comments as "offensive" and "inaccurate". Lord Young had initially written to David Cameron to apologise but after considering his position resigned.

In October the peer had published Common Sense, Common Safety, a report into the operation of health and safety laws aand the growth of the compensation culture.

The following month, on 1 November Lord Young took up the unpaid role of Enterprise Advisor to the Prime Minister. In a statement on the day the Department for Business, Innovation and Skills, defined Lord Young's role as "to propose new ways of encouraging business start-ups, reducing burdens, maximising procurement opportunities and engaging with small businesses."

Lord Young was previously secretary of state for trade and industry in Mrs Thatcher's government.