SNP Westminster leader Stephen Flynn has accused the “near billionaire” Prime Minister of “patronising” the public urging them to “hold our nerve” as interest rates hike has caused a mortgage crisis.
This come as the Bank of England raised interest rates by half a percentage point to 5% and Bloomberg Economics warned on Tuesday that by December they are expected to rise to 6.25%.
During Prime Minister’s Questions (PMQs) Flynn asked Sunak when was the last time he faced struggles to pay his bills?
Sunak told the Commons that inflation is the reason why there is a mortgage crisis with rising repayments and by reducing this is the correct way forward.
During the weekend Sunak said there is “no alternative to stamping out inflation” and told the public “we’ve got to hold our nerve, stick to the plan and we will get through this.”
During PMQs on Wednesday afternoon Flynn said, “On Sunday, the Prime Minister patronised the public when he told them that in the face of ever-increasing mortgage bills, that they simply need to ‘hold their nerve’.
“What a nerve. So may I ask him, the near-billionaire, when was the last time that he struggled to pay a bill?”
Sunak told MPs in the Commons, “The reason that mortgage rates are rising is because of inflation. That is the root cause, which is why it’s absolutely the right policy to tackle, halve inflation and reduce it back to target.
“Now, that does mean that we do have to make difficult decisions. It does mean we have to be patient while the impact of those decisions actually has an impact.
“But in the meantime… we are taking practical steps to support mortgage holders across the United Kingdom, particularly through the SMI (Support for Mortgage Interest) scheme and the new mortgage charter.”
Flynn responded to Sunak saying, “This Prime Minister is out of touch, and the Tory Party is soon to be out of time.
“What the public really want is change.
“But in a week where the Conservative Party and indeed the Labour Party both refused to accept proposals for public sector pay rises whilst at the same time accepting the economic damage of Brexit, is it not the case that Westminster does not offer the people real change nor real hope for the future?”
Sunak replied with, “The honourable gentleman just exposes the complete economic illiteracy of the SNP position.
“His first question talks about the challenges posed on ordinary families by higher interest rates caused by higher inflation.
“What does his next question do?
“Support a policy that would increase Government borrowing and make the situation worse.
“It just demonstrates completely candidly why the SNP’s approach to economic management is simply not fit for anyone in the United Kingdom.”