Mortgage holders in Dagenham & Rainham, could be £455 a month worse off under the Conservatives, new analysis from the Labour Party reveals following the Tories’ plan to eliminate national insurance “in the next Parliament”.
The radical move, floated by the Chancellor during the Spring Budget was confirmed the next day by Treasury Minister Bim Afolami and in an email from the Chancellor to Conservative party members.
The Tories have proposed a £46 billion annual unfunded tax cut, larger than the £45 billion in tax cuts announced by Liz Truss in the September 2022 mini-budget. If mortgage rates increase as much now as they did in the period around that mini-budget, rates could spike by up to 2.4%.
A typical household with a mortgage in Dagenham & Rainham is currently paying £1,771 at current rates, but these could explode by an additional £312 to £2,226 a month in a ‘mini-budget style’ scenario.
Such a repeat would see national interest rates rise from their current level of 4.73% to a massive 7.13%. Tax cuts announced in the infamous mini-budget sent markets into turmoil, crashed the economy and forced mortgage rates soaring for millions of households.
Margaret Mullane, Labour’s Prospective Parliamentary Candidate for Dagenham & Rainham said: “The Conservatives have learned nothing from the mortgage rate bombshell of the Truss government. The Chancellor’s recently announced unfunded plans will leave a £46 billion black hole in public finances. This plan will mean an additional £455 per month passed on to ordinary mortgage holders in places like Dagenham & Rainham.
I speak to people every day making tough decisions between heating or eating. This will be yet another hit on working class communities which has the potential to leave family finances in tatters. Only a Labour Government will deliver the stability that working people need.”
Darren Jones, Labour’s Shadow Chief Secretary, said: “Mortgage holders across the country are already worse off because the Conservatives crashed the economy with families paying the price through more expensive mortgage payments, higher bills, and rising prices in the shops.
Labour have iron-clad fiscal rules that will guide how we spend taxpayers’ money and we will never make unfunded promises like the Tories recklessly do. Labour has a plan to grow the economy to boost wages, bring down bills, and get Britain’s future back."
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