Mortgage & Rent Rises will Increase Pressure on Families
The latest news that home owners are going to see their mortgage repayments increase at a time when they are facing real falls in net and disposable income due to increased inflation on food, fuel and utilities will be a major concern to those who are affected.
It has recently been announced that mortgages are going to rise by a minimum of 0.5% which in itself doesn’t appear to be a lot and with the average mortgage in Northampton being in the region of £68,000 it is “only” an increase of £17 a month or £4.25 a week.
The problem of course is that with fuel at an all-time high, the cost of the weekly food bill increasing every week and wages stagnating, combined with the Governments, (a Government who claim to be the party of low taxation) increase in VAT, fuel duty and the other stealth taxes introduced over the last 2 years, an increase of £4.25 a week may well be the straw that breaks the camel’s back.
Keeping a roof over the families head is the main priority of already hard pressed people and especially parents who are increasingly having to sacrifice spending in other areas including food as the recent information from Tesco’s showed with the company having its lowest market share for over 7 years and its worst Christmas sales in over 15 years.
When people start to cut their food bills it is surely a sign that the austerity measures are seriously starting to hurt.
There is a common phrase used in sport, “No Pain- No Gain” what we are seeing under the Conservative – Liberal Democrat Coalition is that there is
“NO GAIN – LOTS OF PAIN”.
It isn’t only mortgage holders who are going to be affected; Northampton Borough Council and Housing Association Tenants are also facing rent increase of between £5 and £7 a week.
Data from banks and supermarkets is already showing that people are increasingly using their credit cards to put food on the table which just as the spiralling national debt has to be paid off.
With the number of people finding themselves homeless increasing at an alarming rate, the highest in Northampton for over 5 years we are now faced with a return to the late 1980’s and a massive increase in evictions and home repossession.
All of which is symptomatic of the failed and failing economic policies of the Coalition Government that is driving people further into a spiral of personal debt, reducing the money available to spend in the economy.
The reality is that the number of families and individuals who now having to deal with poverty and who are living below the poverty line is increasing and at its highest level for over 30 years.
The biggest impact of course is on those who have to balance the weekly budgets usually women and it is the women of Northampton and the UK who will decide on the future of this country when they go to the ballot box.
People recognise that the deficit is important but they also know that unemployment is at a 17 year high and that the level of debt has increased by over £25 Billion and not decreased as promised by David Cameron and George Osborne which is why they are seriously beginning to question the competence and honesty of this Government.
and what they are saying is very clear, “We don’t mind the pain if it is working”, but it isn’t and “we are not all in this together” so change or at least modify the policy and give us a chance to help put the economy right.
It seems however that the Conservative led coalition is set on ignoring all of the evidence and will continue to follow their economic policies which is so damaging to all but the rich in our society.