Last week, you will have seen that the Bank of England decided to raise interest rates again, taking the base rate to 5.2%. This rise represents the 14th consecutive increase since December 2021.
That means that if you’re on a variable-rate mortgage or looking to re-mortgage, you’ll see your costs increase. This rate rise, then, will be a hammer blow to many households already suffering under the strain of the cost-of-living crisis.
The Bank of England is rightly independent of government, but these latest rises prove that the actions of the government have consequences. The UK currently has a higher rate of inflation than the Eurozone and the USA. Make no mistake, this is a direct result of poor economic management, and Liz Truss’ disastrous mini-budget which tanked the economy last year.
That’s why I’m really pleased that Labour has made economic responsibility a bedrock of its plan for government. That means an ambition to secure the highest sustained growth in the G7, as well as immediate action to support families facing skyrocketing mortgages.
In practice, this means investing in green jobs of the future, introducing clear fiscal rules, giving working people the skills and opportunities to get on, and ensuring that Britain remains a country where firms want to invest.
It’s not a simple fix, but these measures will be the first steps in getting the British economy back on track. When I talk to people in Tameside, they rightly feel let down. People expect their government to make smart decisions, to spend money wisely and to protect the economic interests of the British people.
Sadly, for too long I think we’ve lacked a coherent economic strategy here in the United Kingdom, which is why wages have stagnated and living standards have fallen at their fastest rate since the 1950s.
For ordinary households, it just feels like you’re being hit with prices everywhere you turn. This simply is not sustainable, and the Government needs to take responsibility and take action.
Britain has huge economic potential. Even in challenging economic times, there are brilliant businesses in Tameside leading the way and innovating. There is so much talent, and I want the Government to be doing everything it can to nurture and turbocharge it.
If we do that, then we will build a more prosperous Britain, and by extension a more prosperous Tameside. That’s why I’ll keep doing everything I can in Parliament to hold the Government to account and campaign tirelessly to deliver a Labour Government that works in the interests of ordinary households.