Households in the North East are paying £301 more in mortgage repayments every month because of Conservative economic failure. 

Families re-mortgaging as their two-year fixed-rate deals come to an end are facing interest rates more than three times higher after the Tories crashed the economy and left us uniquely exposed to global pressures after 12 years of stagnant growth.

According to the IMF, the UK is set to have the highest inflation and lowest growth of any major advanced economy over the next few years.

New analysis by Labour has found that this means people in the North East will be paying, on average, £301 more per month than under their old deal.

This comes in addition to rising energy bills, food prices and other household costs after a succession of Conservative chancellors, including now-Prime Minister Rishi Sunak, failed to get inflation under control.

Lisa Nandy MP, Shadow Levelling Up, Housing & Communities Secretary, said:

“Britain literally cannot afford any more of this Tory government. The Conservatives have crashed the economy and left working people in the North East to pay the price. Higher mortgage payments mean less money in people’s pockets at a time when they’re already struggling to get by, but the government doesn’t get it.

“The damage has been done by the Tories – not just with the disastrous mini-Budget, but with 12 years of low growth as a result of large parts of the country being written off. That’s why we need a government that will invest in all people and all places, giving every part of our country the backing to contribute to deliver the growth, stability and prosperity that Britain needs.”

Grahame Morris MP for Easington, said:

“The Conservative Party have presided over 12 years of stagnation. Tax rises and spending cuts have decimated our public services and pushed family finances to breaking point. We live with the consequences; homelessness, food banks, and warm spaces, in a society where working people cannot afford to eat or heat their homes.

“The six-week Liz Truss Government, and the mini-budget, was an unprecedented example of economic self-harm, that has created a £30 billion black hole in the country’s finances. People in East Durham will be forced to pay the price of this six-week folly, when the current Chancellor announces tax rises and spending cuts to plug the Tory economic deficit.

“The Conservative Party are holding the country hostage, refusing to call an election and restore the political stability needed to create economic stability. We have a lame-duck Government, united in self-interest to deliver two more years of low growth and hardship before they make themselves accountable to the public.

“Every month, homeowners are paying a Conservative premium on their mortgage repayments, over £3600 a year more in the North East. This money could have supported local growth and employment, it is now going to banks to cover higher interest rates caused by a mini-budget which is now wholly abandoned.”