Families Facing Danger from Mortgage Increase
I listened to Nick Clegg the Deputy Prime Minister with interest in the way he avoided the question to avoid having to admit to the economic failure of the coalition Government at whose heart he and his party are.
The questions revolved around the major issue of unemployment and especially youth unemployment and whether they were going to ‘change direction’ to restore business confidence and investment in growth.
Twice the Deputy PM said that
“We will use the confidence in the UK to ‘lever in’ finance from the banks and private sector to stimulate growth”
The problem as I see it in my simple world is
“What an earth is he talking about”?
Isn’t that exactly what £350 billion of credits given to the banking was given for, to provide funding to small and medium size businesses, stimulate growth, provide employment, reduce the welfare bill and provide tax revenue from the employed to the treasury.
If the banks having ‘levered in £350 billion” from the Government aren’t going to lend to businesses then who will?
Certainly no-one in Europe, given that we have decided to veto, not veto, and veto again to the extent that we are now seen as peripheral to the serious business of sorting out the economies of European partners on who we depend for over 60% of our exports income.
The major question is where it leaves those who are facing reduced incomes, rising taxes and increasing pressures on how to make ends meet.
If you’re rich you can stop reading now, you’ll be alright and the fat cheques will keep pouring in.
The latest report from the independent mortgage advisors paints a very serious danger that with the recent increase in mortgage repayments people are now seriously facing losing their homes and the prediction/forecast is that there will be an increase in repossession’s over the next 12 to 18 months that will accelerate with the proposed mortgage increases.
This will put another strain on the housing market which is already in an almost catatonic state waiting for Government to provide the stimulus and the development and construction needed to help pull the economy around.
It is a wait that looks given Nick Clegg’s response they may well have to get used to.
What is needed is a Government stimulus, not platitudes and dogma.
The treasury have overall responsibility for the Financial Governance of Business UK and should if the private sector and banks aren’t going to invest in the future but choose instead to sit on excessively large cash mountains go directly to Local Authorities and task them to build social housing on land already earmarked in local plans for development.
It is the Government who in the same way they are going to find £32 billion for HS2, should fund the ‘infrastructure’ to allow housing development to happen and then if appropriate ‘claw back’ the infrastructure costs from the income from the homes.
Northampton is really well placed to benefit from such a change in policy and will be even better placed once the Joint Core Strategy with South Northants and Daventry is ratified next year.
Growth would also have the added benefit of helping to stimulate the wider economy in Northampton and especially the town centre.
Whether our three MPs would support such a policy or continue to support the Conservative – Liberal Democrat coalitions economic policies of austerity without growth, of austerity without hope.
We’ll have to wait and see.