By Cllr Clive Jones
The months ahead are going to very difficult for residents, businesses and for the borough council.
Liz Truss’s first budget as Prime Minister just three weeks ago has been a disaster and wasn’t greeted with any enthusiasm by the financial markets.
This week the Bank of England has warned of, “material risk”, to UK financial stability as a result of the budget.
The Conservatives handling of the economy under Liz Truss’s leadership is looking to be very poor indeed.
Inflation has risen to nearly 10%, up from 5% in February and forecast to be 18% during 2023.
Raging inflation means costs everywhere are going up, the costs of food, fuel, energy such as electricity and gas.
We can all see the effects of increases in inflation every day.
The council faces the same pressures of high levels of inflation. Everything it buys is also going up by the same huge levels of inflation.
The new Lib Dem administration will face up to these difficulties and will continue to take difficult decisions which the previous administration shied away from.
We know this won’t be easy, but we are determined to maintain services where we can, especially for vulnerable residents.
Interest rates are increasing.
In March they were 0.75%.
With four rises since then they now stand at 2.25%. They are predicted to reach 4% by the end of the year, rising to 5.5% by July 2023.
Increases in interest rates are also going to hurt many residents across the borough, especially those with mortgages.
Residents who are re-mortgaging in the coming weeks and months are facing increases of hundreds of pounds in their monthly mortgage costs.
These huge increases which for many will be over £500 a month will significantly reduce householders’ ability to buy food for their families, clothe them, heat their homes, and fill their cars with fuel.
Increases in the mortgage rate will also lead to an increase in rents for those renting in the private sector.
The handling of the economy by this Conservative government is disastrous for you as residents and for the council. They are hurting residents and hurting the council which provides you with daily services.
Cllr Clive Jones is the leader of Wokingham Borough Council and Lib Dem member for Hawkedon Ward
