Articles and Speeches

Chancellor Absent as Inflation Rises
19-Jan-07, Windsor Express Article.

Some economic figures released this week have caused a deep shudder for those of us of a certain age.

Inflation now stands at 3% which is its highest rate in 11 years! It is almost double the 1.6% rate that the Government inherited in 1997. In addition, the Retail Price Index now stands at 4.4% - its highest level since 1991.

These high levels represent worrying rises in the cost of living for many families, who may now struggle to make ends meet. If that weren’t enough to concern us, the Bank of England has been forced to hike interest rates to 5.25% and this may well not be the last. People with mortgages, loans and credit card debts will now see their monthly repayments rise accordingly.

The Government has tried to explain the rise in inflation by blaming high oil prices, but that fails to explain why our inflation rate is now double that of the rest of the world. It perhaps seems more likely that Chancellor Brown’s economic policy is to blame, which has seen him borrowing more and more as he attempts to fill a huge hole in the public finances.

It is unsurprising that many people were disappointed to learn that the Chancellor had flown to India at the last minute to take part in a trade trip with Alistair Darling. But with inflation, costs of living and unemployment figures all higher than they were in 1997, it is no wonder the Chancellor has not stuck around to defend his economic policy.