Chris Elmore, MP for Ogmore, has called on the UK Tory Government to fully reverse their recent Budget following new figures showing the average mortgage will be hit with an additional £1,500 due to the Government’s actions.

The average rate on a two-year fixed-rate deal increased by an entire percentage point between last Monday and yesterday to 5.75 per cent, a post-financial crisis high.

The rise raised monthly repayments on a £200,000 home loan by £124 a month to £1,167 — £1,486 more a year. Last December the average rate on a two-year fix was 2.34%.

The UK Tory Government’s recent Budget caused a run on the pound which resulted in the Bank of England having to bail them out with £65 billion. If no action would have been taken there were strong fears that pension providers could have collapsed, spreading contagion throughout our financial system.

Not only was a run on the pound created by Chancellor’s and Prime Minister’s plans, the cost of government borrowing sky-rocketed. This directly impacted the cost of borrowing for households across Ogmore.

Chris Elmore, MP for Ogmore, said:

“The UK Tory Government has set fire the UK’s reputation for sound financial management – spooking the markets and hiking up the cost of mortgages. Families in Ogmore were already struggling with the cost-of-living crisis and an additional £1,500 per year to mortgage repayments couldn’t have come at a worse time.

Let’s be clear: this is an economic crisis made in Downing Street, paid by working people.

The entire Budget needs to be scrapped. It’s unworkable and based in fantasy economics: economics that when faced with the real-world crumble into dust. The shameful actions of the UK Tory Government have stained the UK economy and we will be paying for it for years to come. Only a UK Labour Government can fix this damage and tackle the cost-of-living crisis head on.”