The Economy

Debate between Florence Eshalomi and Bim Afolami

Wednesday 22nd May 2024 Commons Chamber

[Bim Afolami]

As my hon. Friend knows, it is for the Monetary Policy Committee of the Bank of England to determine the policy on interest rates, but we hope that working in partnership with the Bank of England to cut inflation will mean that at some point later in the year interest rates will start to come down, as the IMF has suggested, as a result of inflation being at target.

[Florence Eshalomi (Vauxhall) (Lab/Co-op)]

In response to the Minister’s last reply, even if interest rates are cut later this year, that will not make an impact for a number of my constituents in Vauxhall. According to the Bank of England, people have seen their mortgage and rent go up by over £240 a month, as my hon. Friend the Member for Brent Central (Dawn Butler) said. Over 10.1 million people are falling behind on their bills, according to research by Stop the Squeeze. The Resolution Foundation has found that annual bills in 2024 are now 67% higher in real terms than in 2021. This is not a time to celebrate. I know that, at my advice surgery in a week’s time, my constituents are going to come to me raising these issues. The fact is that they cannot afford to heat their home or keep up with their bills. Yes, these statistics may look good, but will the Minister accept that for real people this is another slap in the face?

[Bim Afolami]

What I will certainly accept is that there are millions of people in this country for whom the cost of living crisis is still real. That is why we are taking the action that we are taking. That is why working people—[Interruption.] As a result of cutting national insurance, a person on an average salary is £900 better off than they would have been a year ago. That is why we are focusing hard on making sure we bring down borrowing, rather than increase borrowing as planned by the Labour party. What I would say to the hon. Lady’s constituents if I were to speak to them at her surgery is that the economy is on the right track, that we are at the point where the economy is starting to turn the corner and that, if they go with Labour’s leadership, things are going to get a lot worse. That is why we need to keep on the plan that we have set out.