Interest rate rise will 'come as a hammer blow'

After the Bank of England hiked interest rates for the 14th consecutive time, taking the base level to 5.25%, Shadow Chancellor Rachel Reeves writes exclusively for the Mirror on how Labour would ease

Across Britain, Mirror readers are struggling with the cost of living. Higher food bills in the shops, higher energy bills landing on the doorstep and higher mortgage payments for millions. That’s why the 14th interest rate rise in a row today will come as a hammer blow for working people.

A typical household can now expect to pay many hundreds of pounds more when they go to remortgage. The Bank of England has also warned that food prices will be 10% higher at the end of this year than they were at the start. And Britain’s economic growth, which has flatlined for years, will now be weaker than previously expected.

It angers me that we got to this place, because it did not have to be this way. But, after 13 years of the Conservatives weakening our economy, they crashed it last September with their disastrous mini-Budget and left you paying the price.

Britain’s economy isn’t working because Rishi Sunak ’s Conservatives are no longer working for Britain - they are out of touch and out of ideas; managing decline rather than getting us moving again. It’s time for a change and that’s why I want to tell Mirror readers exactly what Labour would do differently if we were in government.

First, we’d make sure the banks provide support to mortgage holders who are struggling with repayments. Second, we would introduce a proper windfall tax on the huge profits the oil and gas giants are making because of Russia ’s invasion of Ukraine and use that money to help families with the cost of living. And third, we would put in place a long-term plan to secure and grow our economy.

That includes investing in Britain’s clean and renewable industries to cut energy bills, create good jobs and strengthen our energy independence from the actions of dictators like Putin.

Delivering the change Britain’s economy needs will not come easy; the damage the Conservatives have done cannot be underestimated. However, I know how much potential there is in Britain - we have the skills, businesses and ideas to rebuild, to have an economy that is strong and growing so working people are better off. That’s my plan - Labour’s plan - and together I know we can deliver it.

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Interest rate rise will 'come as a hammer blow'