Ahead of an expected hike in interest rates today (Thursday),
Labour urge the Prime Minister to “get his fingers out of his
ears” on the cost of living crisis and deal with the continued
fall out of the disastrous mini-Budget in September.
Labour has accused of the Prime Minister of
being directly responsible for the Tory mortgage penalty,
saying that as Chancellor, Sunak simultaneously left Britain
with the biggest tax burden since the Second World
War, while still “tickling the tummies of unfunded, trickle
down tax extremists” on his backbenches, creating the perfect
conditions for who came and “lit the fuse” with the kamikaze
mini-budget.
It comes as the party’s Shadow Chancellor reveals new figures showing
how £1.05 billion has been shelled out by households in higher
mortgage payments since the mini-budget.
Almost three-quarter of a million
households missed their rent or mortgage payment in April,
according to the latest Which? Consumer Insight Tracker, with
higher mortgage rates and increased rental costs pinching
finances.
Reeves today said the party would be republishing the figures
monthly on how much more families are paying on their mortgages,
as 13 years of Tory economic failure continues to blight
household finances.
The Resolution Foundation recently published figures estimating
that people remortgaging will pay an average of £3,000 more per
year in interest payments. An estimated 1m families will have
re-mortgaged since last October, as well as 1m who are on
variable rate mortgages and will have felt the effects of higher
interest rates immediately.
It follows local election results last week exposing the disquiet
with Tory economic failure, with the cost of living crisis the
number one issue coming up on the doorstep.
Speaking ahead of interest rate results, Labour’s Shadow
Chancellor said:
“Britain has huge promise and potential, and is full of hard
working people, families and businesses that just want to get
on.
“But after 13 years of Tory economic failure, everyone is feeling
worse off – and far too many people will be wracked with worry
again as they wait for the interest rates decision to land.
“The Prime Minister should take his fingers out of his ears and
admit his personal responsibility for a Tory mortgage
crisis leaving so many worse off.
“He trapped our economy in a cycle of low growth and high taxes,
while tickling the tummies of unfunded, trickle down tax
extremists in his party. simply came and lit the fuse.
“He should bring in a proper windfall tax on the enormous profits
of oil and gas giants now to support working people, and lift us
out of this crisis.”
Ends
· The 2023 Resolution
Foundation Living Standards Outlook estimates that 1.8m mortgages
would be renewed over the course of the 2023-24 financial year.
That is equal to 150,000 a month.
· The Outlook also
estimated that on average those remortgaging would face a £3,000
increase in their annual mortgage payments. That is equivalent to
£250 per month.
· In addition the
Outlook notes that 1m are on floating-rate mortgages and so would
also be affected.
· https://www.resolutionfoundation.org/app/uploads/2023/01/Living-Standards-Outlook-2023.pdf
· Since September’s
mini-budget there have been seven full months – so just over 1m
will have remortgaged so far.
· And collectively they
will have paid a total of £1.05bn in higher mortgage payments so
far.
· The recent Which?
Consumer Insight Tracker found that almost three-quarter of a
million households missed their rent or mortgage payment in April
· https://www.which.co.uk/news/article/700000-households-miss-rent-or-mortgage-payments-in-april-ahtlH5O5a4Oz
