Today, the Bank of England announced an interest rate rise to a new 15-year high of 5.25%, up from 5%. It’s a decision that will send shockwaves across households in York and the wider UK, particularly those with mortgages. This decision – the 14th consecutive increase – comes as the Tory government continues its struggle to combat inflation.
In York, this rise hits especially hard. Our city has some of the highest house prices outside of London, resulting in correspondingly high mortgage rates. The pressure on York residents is increasing, not lessening, and this decision only amplifies their financial strain.
Lars Kramm, the Parliamentary Spokesperson for the York Green Party, said:
“I want to express our deep concern for those affected by this decision. An interest rate hike is not just an abstract economic concept; it directly impacts the everyday lives of real people. Families who were just about managing to meet their mortgage repayments are now facing increased debts. Those hoping to step onto the property ladder might now find their dreams even further out of reach.
With Brexit fallout still weighing heavily on our economy and inflation remaining stagnant, this rate rise could not have come at a worse time. It’s clear that the government’s priorities lie elsewhere and not with the many people who are struggling to make ends meet.
In the face of this financial hardship, the York Green Party is committed to fighting for the people of York. We are committed to reshaping the economy, prioritising fairness, resilience, and the well-being of our residents over the interests of the wealthy few.
We believe that in a just society, no one should have to bear the brunt of economic decisions that they did not make. We will stand up to the Tories and their damaging economic policies, and we will advocate for those who are most affected by these fluctuations.
The current economic model is failing many York residents, and the recent interest rate hike is just one more indicator of this. It’s time for a change – it’s time to build an economy that works for everyone, not just the privileged few. We urge the government to provide immediate financial support to those affected by the interest rate rise. But our fight won’t stop there. We will continue to call for long-term, systemic change, because that’s what York and its people deserve.
Every day we are governed by a government that appears to have little understanding of the reality for many of their constituents is another day we’re held back. The York Green Party is ready and willing to challenge this, and to fight for a fairer, more equitable economy for all.”