Cost of living crisis increases its grip on country, MP Bill Esterson warns

Cost of living crisis increases its grip on country, MP Bill Esterson warns

by Henry James (August 2022)

THE cost of living just got more costly for the people of Sefton, warns Sefton Central MP Bill Esterson.

On Thursday the Bank of England’s Monetary Policy Committee (MPC) raised the rate of interest from 1.25% to 1.75% which is the biggest rate rise in 27 years in an attempt to combat inflation levels which is currently at 9% which is projected to be at 10% towards the end of the year.

Sefton Central MP and Shadow Minister for Business and Industry, Bill Esterson said: “Today’s decision by the Bank of England’s Monetary Policy Committee to raise interest rates to 1.75pc will have a significant impact on many of my constituents who are already having to make tough decisions as they counter this Conservative cost of living crisis.

“The reality is that the interest rate rise was expected and it’s likely that more rises will follow. But what we have seen over the last couple of weeks as Liz Truss and Rishi Sunak fight it out to be Prime Minister, is just how out of touch they are with the British public and the challenges the country is facing right now. Both Truss and Sunak have been members of the government which has presided over the economic crisis for the last 12 years and it is a big worry that neither of them have a plan to help people who face huge price rises and falling wages and pensions.”

The MPC also announced that the United Kingdom is now projected to enter recession from the fourth quarter of this year with household income projected to fall sharply with consumption growth predicted to be negative.

Bill Esterson MP said: “The Bank of England’s forecasts show us how hard this crisis is hitting families, how much is left to come and how vulnerable 12 years of economic mismanagement by the Conservatives have left us.

“Not only is this the highest rate increase in 25 years, but inflation could hit 13 per cent while real wages fall, pushing more and more families into financial difficulty.

“The government must act fast if we are going to avoid one of the worst recessions since the 1990s.

“The government should scrap tax breaks on oil and gas producers and provide more help to people who are struggling to pay their energy bills by cutting VAT. Businesses also need help right now and scrapping business rates would make a massive difference to many firms, especially smaller businesses.”

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