DREW HENDRY: Families are fighting to maintain financial stability
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Recently, I sat down with a local young couple. Like many of us, they are a symbol of the struggle facing Scottish families today – grappling with escalating costs at the pump, the checkout, and now, their mortgage.
They work hard to build a secure future for their two children but are at their wits’ end.
Inflation has eaten into their monthly income, and the fixed-rate mortgage deal they were so relieved to secure years ago is coming to an end. They’ve both had a real-term cut in their take-home pay. The prospect of a £200 increase per month isn’t a distant threat: it’s a looming reality.
They looked at me, searching for answers, and I felt their frustration. How did we get here?
The truth is, this predicament didn’t just happen. It’s the result of the UK government’s handling of Brexit, its economic policies, and its choice of leaders. The pandemic, the war in Ukraine, and the energy crisis played their parts, but so too did the actions and inactions of the UK government. Remember Liz Truss and Kwasi Kwarteng, not to mention the promises of a prosperous Brexit.
The Tory government, which once prided itself on economic stability, tanked the economy, bringing instability and rising costs.
Inflation fell to 8.7 per cent last week, dropping slower than expected, and food inflation remains at a staggering 19 per cent.
I listened to this young couple tell me how they’ve had to cut out fresh fruit and vegetables to save money at the checkout.
The government’s “levelling up” mantra rings hollow when families are fighting to maintain financial stability.
They don’t need soundbites; they need solutions.
And it isn’t just about this young couple trying to make their way; it’s about all of us. It’s about demanding a government that listens, understands, and acts.
The Bank of England has raised interest rates 12 times since the end of 2021. The impact? A typical tracker mortgage customer is now paying about £417 more a month, while those on variable rates have seen their costs rise by £266.
By the end of the year, another 1.3 million people across the UK will be renewing their fixed-rate mortgages; they carry that worry and strain every day. Inflation is falling, but much lower than predicted.
The head of Barclay’s bank has warned a “huge shock is on its way”, and he is not wrong. The Chancellor needs to act now, not hope and wait.
