Oral Answers to Questions

Gerald Jones Excerpts

Tuesday 20th June 2023 Commons Chamber

[Gerald Jones (Merthyr Tydfil and Rhymney) (Lab)]

3. What recent assessment he has made of the potential impact of the growth plan of 23 September 2022 on mortgage rates.

[Janet Daby (Lewisham East) (Lab)]

9. What recent assessment he has made of the potential impact of the growth plan of 23 September 2022 on mortgage rates.

[The Economic Secretary to the Treasury (Andrew Griffith)]

We recognise that this is a concerning time for homeowners and mortgage holders, but we cannot ignore the fact, much as some may wish to, that interest rates have risen across western economies as a result of the covid pandemic and the impact of the war in Ukraine. The Bank of England sets the base rate, which can have an effect on mortgage pricing, and the Bank has been independent since the decision of the then Labour Government in 1997. We remain committed to responsible management to bring inflation under control, which is the only sustainable way to lower interest rates and lower mortgage rates.

[Gerald Jones]

The former Prime Minister has apologised for the mistakes in her so-called growth plan and the damage it caused. Families across the UK will soon start paying thousands more in mortgage interest payments. Given the Prime Minister’s comments yesterday, it appears that there is little or no further support coming. Will the Minister join the former Prime Minister and apologise to the nation for the impact of the Conservative party’s misguided economic experiment?

[Andrew Griffith]

Much as the Opposition would prefer this not to be the case, it is a fact that this is impacting across western economies. Although market-to-market comparisons are not always easy, in the United States of America the average 30-year mortgage has now increased to above 6%. As I have said, this Government will do what we can sustainably to lower interest rates, and thereby ease the burden on mortgage holders.