Oral Answers to Questions

Debate between John McNally and Bim Afolami

Tuesday 14th November 2023 Commons Chamber

[John Mc Nally (Falkirk) (SNP)]

19. What recent assessment he has made of the implications for his policies of trends in the level of mortgage interest rates.

[The Economic Secretary to the Treasury (Bim Afolami)]

The Government’s mortgage charter is providing support to vulnerable households, and arrears and repossessions remain at historic lows. Government support has helped real household incomes rise by 2.7% year on year in the latest data.

[John Mc Nally]

With the economy flatlining and interest rates remaining at 5.25% and more than likely to remain above 5% next year, it simply follows that households’ disposable incomes will continue to be squeezed throughout 2024. Surely the Chancellor agrees that mortgage interest tax relief must be reintroduced to support households facing high interest rates alongside inflation.

[Bim Afolami]

As the hon. Member has already heard from the Chancellor, the economy is still growing. The latest labour market data shows that incomes are going up at a higher rate than inflation, so I do not recognise the picture that he paints.