Commons Sense

House of Commons · Ministers' Questions

Mortgage Interest Rates

Wednesday 24 May 2023 · 3 questions

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Answered 0 Partly answered 1 Not answered 0

Key points

  • Liz Twist asked the Secretary of State about discussions on the impact of rising mortgage interest rates on Welsh homeowners.
  • Liz Twist questioned the adequacy of the windfall tax introduced by the Chancellor, suggesting it failed to address the cost of living issues for Welsh households.
  • Jo Stevens highlighted that since the Government's mini-budget, 43,000 Welsh households have paid an extra 20.3 million in mortgage payments, criticizing the economic policies as reckless.

Topics (select to filter)

Questions & Answers

Q1 Liz Twist Lab Blaydon and Consett
Economy Housing Wales
Context

The question arises from concerns about the effect of rising mortgage interest rates on households in Wales. The issue is relevant due to broader global economic conditions.

Question

What discussions he has had with Cabinet colleagues on the impact of changes in the level of mortgage interest rates on homeowners in Wales?

Answer from David Davies

I have regular discussions with Cabinet colleagues on a range of issues. Interest rates are rising across the world as countries manage rising prices due to the pandemic and Putin's illegal invasion of Ukraine. However, I am very pleased to see that the UK average two and five-year fixed mortgage rates have declined in recent months.

Partly answered

Not addressed: The specific impact on Welsh homeowners was not addressed, focusing instead on general global trends and positive developments.

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Q2 Liz Twist Lab Blaydon and Consett
Taxation Energy
Context

The question is prompted by the Chancellor's failure to introduce a proper windfall tax, which has left billions of pounds unused that could help Welsh households with the cost of living.

Question

The Chancellor failed to bring in a proper windfall tax in the Budget in March. Does the Secretary of State agree that there are still huge holes in that levy, which mean that billions of pounds that could be used to help Welsh households with the cost of living are being ignored?

Answer from David Davies

The Chancellor and this Conservative Government have brought in windfall taxes on energy companies taking oil and gas out of the North sea. Energy companies are paying around three times more in taxation than other companies. I hope the hon. Lady will be supportive of the companies that want to take more oil and gas out of the North sea, so we can raise even more in taxation to support the least well-off in the United Kingdom.

Not addressed: The specific gaps in windfall tax implementation were not addressed; instead, emphasis was placed on existing measures and future potential for increased revenue.

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Q3 Jo Stevens Lab Cardiff East
Economy
Context

Since the mini-budget, Welsh households have experienced increased mortgage payments due to the government's economic policies. The MP wants an apology for the resultant financial strain on people.

Question

Since the Secretary of State's Government's mini-budget, 43,000 Welsh households have paid an extra £20.3 million in mortgage payments. That is a £20 million Tory mortgage premium in just seven months. His Government's economic recklessness continues to cause misery for people across Wales, so will he take the opportunity to apologise to them?

Answer from David Davies

The economic policies being pursued by this Government are to bring inflation down, as the news today demonstrates. I very much hope the hon. Lady will want to celebrate the fact that inflation is now falling. This United Kingdom Government are committed to seeing inflation halved. The policies of her party would push inflation through the roof and push us into another financial catastrophe and crisis of the sort we saw the last time it left office.

Not addressed: The request for an apology was not addressed, focusing instead on a critique of opposition policies.

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