Oral Answers to Questions

Debate between Steven Bonnar and John Lamont

Wednesday 28th June 2023 Commons Chamber

[John Lamont]

Inflation is a problem affecting many western economies, particularly those in Europe, and it is right that this Government continue to provide cost of living support while sticking to our plan to avoid adding unnecessary inflationary pressures. The average household in Scotland receives £1,850 from the UK Government, with the poorest households receiving £2,445. About £5.2 billion was spent in 2022-23, which is more than the Scottish Government’s entire annual welfare budget.

[Steven Bonnar]

After 13 consecutive hikes in interest rates, the Institute for Fiscal Studies has warned that 1.4 million more householders could face a 20% fall in disposable income. This mortgage crisis started with a disastrous Tory mini-Budget last September and is adding to the cost of living crisis. Will the Minister please explain what the hell his party is doing to clean up the mess it created?

[John Lamont]

We do not accept that analysis. We recognise that this is a worrying time for homeowners and mortgage holders, but we cannot ignore the fact that interest rates have risen across western economies as a result of the pandemic and the impact of the war in Ukraine. The Government remain committed to responsible economic management to bring inflation back under control, which is the only way to achieve sustainably lower interest rates and mortgage rates.