After surviving the internal censure motion badly wounded and losing the confidence of 41% of his deputies, Boris Johnson intends to strengthen his leadership with the announcement of bombastic measures to help the British drowned by the rise in the cost of living. Thursday in blackpoolnorthwest of England, the prime minister promised the “sleep” of access to buying homes for millions of low-income citizens, who receive social benefits. An old idea that Margaret Thatcher put into practice in his day and which the conservatives use from time to time.
Johnson announced a “comprehensive review” of the mortgage market, so as to make it easier for social housing tenants with too little a deposit to get a mortgage. “We need to have many more mortgages at 95%”, he claimed. Getting one is “an incredibly difficult thing for a lot of people in this country. It does not have to be this way”.
Most of the potential buyers form part of the sector of the population with the greatest difficulties on a day-to-day basis, simply being able to buy food or pay the electricity bill. Housing aid associations, aware of the problems on the ground, have criticized the plan as it would severely reduce the already meager number of low-cost accommodation available.
The Government, assured Johnson, works to reduce the price of transportation, food or child care. “We are facing global price pressures caused by the lingering effects of covid and the impact of Putin’s aggression in Ukraine,” but, he added, “we will get through it.” He again promised a tax cut, although his government has increased them, something that deeply irritates a good part of the conservative deputies.
The Organization for Economic Cooperation and Development (OECD) indicated this week that the growth of the British economy will plateau next year and will be the lowest among developed countries, leaving aside Russia. With inflation currently running at 9% and forecast to rise further, Johnson argued that a rise in wages trying to match prices would trigger an economic crisis. “When does that start? wage-price spiral, lhe only cure to curb rising prices is higher interest rates,” he said.
Railway workers are preparing for a multi-day strike at the end of this month, motivated in part by wage demands.
Eddie is an Australian news reporter with over 9 years in the industry and has published on Forbes and tech crunch.