Harlow Labour leader backs shadow chancellor’s plans to help homeowners struggling with mortgage payments
News / Thu 22nd Jun 2023 at 02:57pm
THE LEADER of Harlow Labour has backed the shadow Labour chancellor’s plan to help to help homeowners struggling with mortgage payments.
Councillor Chris Vince said: “Whilst continuing increases in interest rates are inflicting worry and misery upon thousands of mortgage owners, the Government are more interested in deflecting blame for the crisis on everybody else rather than address the issue. Having spent months blaming Putin for the problems they have now started attacking the Bank of England for doing exactly what they want the Bank to do!
The Prime Minister has said that halving inflation is a top priority, it’s one of his five key pledges, yet it remains stubbornly fixed at higher levels than most other European countries.
When asked recently if he would take responsibility for the failure of these pledges he said “it’s absolutely my responsibility. I’ve told the public to hold me accountable”. This responsibility has evaporated as he now seeks to pass the blame to anyone other than himself.
The Chancellor of the Exchequer has also said he isn’t bothered about the prospect of another recession as long as inflation is brought down. The Government just don’t seem to care about the devastating impact high interest rates and recession have on household budgets which are already stretched to the limit.
While the Government remain impotent and distracted by the internal party squabbles over their disgraced former leader and his coterie of embittered supporters, Labour has developed a plan to help support mortgage holders through the crisis.
Labour would force the banks to help borrowers by allowing temporary switches to interest only mortgages, extending mortgage terms, halting repossession proceedings for 6 months and not penalising the credit rating of people asking for help during this crisis.
“These are practical suggestions to help ease pressure on mortgage holders, that’s the Labour Difference!”
Banks are already offering temporary switches to interest only mortgages and repayment holidays. They do not need the Labour Leader to state the obvious. The last thing banks want is a mass of defaults and repossessions. This is nothing more than Labour seeking to deflect attention away from the fact they have no serious policies to tackle what is a global problem, not one confined to the UK as Cllr Vince seeks to imply. The country doing the best in tackling both inflation and unemployment is in fact the USA. Euro Zone inflation stands at 6.1% although certain countries like Austria have higher inflation than the UK at 8.9%. Significantly, the Euro Zone unemployment rate is significantly higher at 6.5% compared to the UK rate of 3.8%. Although higher interest rates will undoubtedly cause short-term pain, they will help curb inflation. The truth is that Labour has no genuine viable alternatives. This is all a smokescreen.
Did you really expect Cllr. Vince to disagree with Reeves? No me neither! What was the point of this article except to recognise the rubbish currently leading this country. But Starmer will be just as bad with no vision and no real policy agenda except more of the same rubbish wearing a red badge.
Hang on. Labour want to use tax payers money bailing out people who didn’t anticipate a rate rise and bought houses they couldn’t really afford whilst inflating house prices at the same time. Yeah great penalise those who bought a house and factored in what would happen if rates went up, thanks. What do we get? While the speed of rate rises has been rapid it’s hardly been unexpected for the last 5 years with brexit and covid long before liz truss’ unique brand of economics came along. Sorry Labour, this isn’t a credible solution to a problem made by the tories.
Gary Roberts, you have hit the nail firmly on the head. But it is not just interest rates that Labour have no answer to. They have no answer to any of the problems we have at the moment. They criticise everything the Tories do, albeit cost of living crisis, NHS crisis, boat people and so on, without offering anything any better. They have no more idea than the Tories on everything, and anyone thinking a general Election, and getting Starmer into power is going to make a scrap of difference, is in for a very rude awakening.
" Labour want to use tax payers money" - no they don't. It's the exact opposite. Labour is putting the onus on the banks, not the taxpayer. Some of what Labour is proposing banks have done before (payment holidays, interest only etc). The difference is that Labour is proposing these actions should be mandated. On the other hand, the Tory plans are: "Halve inflation and reduce prices". Sure, halving inflation will reduce prices if you use maths from a different universe, but not here. Another Tory plan is to re-introduce MIRAS - now this really is using taxpayer's money to subsidize mortgage owners. How odd that Rich! is "100% on it" only now that mortgage owners are feeling the pinch. Nothing was done when basic food prices increased, affecting the lower paid and less well off.
The first two contributors, James and Gary Roberts, give the counter arguments to Cllr Vince. Labour's Keir Starmer and Rachel Reeves have been running around the country telling business leaders that they will play nicely in Government. We know what happened last time a Labour government were so business friendly: the economic and banking crash in 2007/8 due to 'limited touch' regulation of the financial sector.
The biggest issue is the two main parties are not actually looking at the issues affecting us here in Harlow. We just have Halfon for the blues, and Vince for the reds just busy cutting and pasting names, and churning out their Central Office Press Releases! Get out of your ivory towers and see what needs doing in and for our Town! Mark Gough - Reform UK
Mark Gough is spot on about cutting and pasting central office press releases. It means Halfon and Vince can produce a letter in under three minutes. It is a cynical and well established ploy to increase name recognition, not to advance solutions to problems.