Management of the Economy and Ministerial Severance Payments

Debate between Lisa Nandy and Peter Gibson

Tuesday 15th November 2022 Commons Chamber

[Lisa Nandy (Wigan) (Lab)]

I beg to move,

That this House censures the former Prime Minister, the Rt Hon Member for South West Norfolk, and the former Chancellor of the Exchequer, the Rt Hon Member for Spelthorne, for their mismanagement of the economy while in office, which has resulted in an average increase of £500 per month in mortgage payments for families across the UK; and believes that, if they have not already done so, both Rt Hon Members should waive at least £6,000 of their ministerial severance payments.

Like every Member in this House, I have been inundated in recent weeks by constituents who have seen their dreams of home ownership go up in smoke and who have seen hundreds of pounds added to their monthly mortgage repayments since the disastrous mini-Budget which crashed the economy and sent interest rates soaring. Yesterday, I spoke to a constituent who has had her mortgage offer withdrawn. She is in private rented accommodation and her private landlord, like many others, is getting out of the system. She has been served with a no-notice eviction. She has a young son and she has been told to leave her home before Christmas. So I make no apology for coming to this House angry today. I am angry that this has been visited on my constituents. I am angry that this is a crisis that was made in Downing Street and that since it happened the Government have not lifted a finger to help.

Mortgage offers have been withdrawn. Dreams have gone up in smoke. We have seen the largest interest rate hike since 1989 and the cost of borrowing is at its highest in almost 15 years. A typical family is now paying £500 more every month towards mortgage repayments.

[Peter Gibson (Darlington) (Con)]

indicated dissent.

[Lisa Nandy]

The hon. Gentleman can shake his head, but it is a fact. This is money that many families across the country simply do not have. Food is going up, energy is going up, rents are going up and now mortgages are going through the roof. The one thing that this country cannot afford anymore is more of this Tory Government, who have been in office for 12 years.

Almost 2 million people are struggling to afford their mortgage costs. Government Members do not have to take my word for it—that is according to the Office for National Statistics. That is one in four mortgage holders. First-time buyers now face putting £1 of every £4 they earn towards their mortgage. Mortgage repossessions have soared by 91% compared with the same period last year, while the number of orders to seize property is up over 100%.

The crisis does not just affect homeowners; it is seeping into every part of the housing market. Buy-to-let landlords’ profits have declined by almost three quarters compared with last year because of rising interest rates, which means many tenants, already forking out huge chunks of their income on rent, are seeing their rents go through the roof. This is a housing crisis, the likes of which we have not seen for a generation, and what caused it? Let us make no mistake that this is a Tory crisis created in Downing Street by a disastrous mini-Budget which crashed the economy and threw families up and down the country under a bus. It is no coincidence that, after the mini-Budget, more than 40% of available mortgages were withdrawn from the market. It is no coincidence that the Bank of England had to launch an unprecedented intervention to stabilise the markets. Hon. Members do not need to take my word for it; 12 days ago, the Bank of England’s Monetary Policy Committee report said:

“The sharp pickup in UK interest rates has been partly driven by global factors, but UK-specific factors have played an important role”—

and that

“UK interest rates had increased by somewhat more than others”.