Interest Rate Rise Signals More Pain for Homeowners in Powys

The Liberal Democrats have hit out at what they call “the Conservatives failed economic policies” after a surprise rise in inflation, followed by interest rates last week.

Inflation increased yet again this week to 10.4% despite earlier expectations it would fall. In response, the Bank of England raised UK interest rates by 4.25%.

Average mortgage repayments have risen 27 per cent for borrowers whose deals ended between September and February following former Prime Minister Liz Truss’ disastrous budget. The rise is expected to result in a £24 billion blow to the UK economy.

In Powys, mortgage possession claims rose 855% in the three months after Liz Truss’ budget compared to the same period a year earlier according to figures analysed by the Welsh Liberal Democrats.

Commenting Brecon & Radnorshire Liberal Democrat Candidate David Chadwick said:

“Last week’s news will come as a hammer blow to countless hardworking families right across Powys.

“People seeing their mortgage bills go up by hundreds of pounds a month have been left high and dry by this Conservative Government, which sent interest rates soaring with their catastrophic mini-budget.

“Rishi Sunak’s pledge to halve inflation is in tatters.

“The Government could be cutting household energy bills and extending energy support for businesses to help keep prices down. Instead, their inaction means high inflation could continue to harm hardworking people for longer.”

Mid & West Wales Senedd Member Jane Dodds added:

“Liz Truss’ budget drove our economy into the ground and people across Powys are still feeling the impacts today. Our local Conservative parliamentarians that supported her reckless economic policies should apologise to the people of Powys.

“The Conservatives have shown they cannot be trusted to manage taxpayers’ money, at the next General Election I would urge people in Powys to back the Liberal Democrats who promise to safeguard the public finances responsibly.”

ENDS