Mortgage costs warning shows economy is headed for turbulence

The latest from the Bank of England suggesting that around 1.3 million more UK households are facing a jump in their mortgage costs following the economic “shock” caused by the conflict is perhaps the most stark warning of all.

The Bank’s latest financial stability report (FSR) said the UK economic outlook has “deteriorated”, increasing pressure on UK households and businesses.

People don’t need to cast their minds that far back to remember mortgage costs seeing a spike. The current Government has to learn lessons from the economic shock that followed Liz Truss’ disastrous Budget in 2022.

It is clear that economic pain is on the horizon and it’s not just mortgage costs that are likely to rise.

While the PM insists the UK is “well-placed” to weather the storm it is vital that Sir Keir Starmer isn’t tin-eared about the nation’s economic concerns.

The economy is likely to take damage this year, there is no avoiding that. However, the current crisis provides an opportunity for the Government to deliver much needed growth in the future. It needs to look at how British businesses can be unleashed so that growth can be supercharged. Where mutually beneficial partnerships can be built with other trading nations.

What Britain cannot afford is to be supine in the face of the latest economic shock. The Covid and Ukraine crises led to mounting debt and seemingly no recovery plan. That is the challenge that Sir Keir and his Government must rise to.