Mortgage bombshell if Tories unleash their £230 billion tax cuts.

News from Labour Prospective Parliamentary Candidate for Dagenham and Rainham –Margaret Mullane.

Mortgage holders in Dagenham and 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%. 
 
The Tories have yet to explain how they would pay for their unfunded Liz Truss style policy, which a move that would cost £46 billion a year, equivalent to £230 billion over the course of a five-year parliament.   
 

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 totalled £45billion and were unfunded as the government did not set out what savings it might make. This sent markets into turmoil, crashed the economy and forced mortgage rates soaring for millions of households.  

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. 
 
“The Conservatives clearly haven’t learned anything since Liz Truss sent people’s mortgages spiralling, with the Chancellor just this week floating unfunded plans that would leave a £46 billion black hole in the public finances. 
 
“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. 
 “Only Labour has a plan to grow the economy to boost wages, bring down bills, and get Britain’s future back.”

Margaret Mullane, Labour’s Prospective Parliamentary Candidate for Dagenham & Rainham told the Havering Daily: 

“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 and has the potential to leave family finances in tatters. Only a Labour Government will deliver the stability that working people need.”

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