Labour’s pledge to invest \u00a328 billion each year in combating climate change could have a significant impact on millions of homeowners, since interest rates might skyrocket, causing mortgage prices to rise. <\/p>\n\n\n\n
Labour has been chastised for committing to invest \u00a328 billion a year in climate change mitigation, with critics warning that the party’s policies will inflict financial hardship for millions of Britons. <\/p>\n\n\n\n
According to ministers, Labour’s pledge to spend money on environmental issues will raise mortgage rates while also increasing the country’s reliance on foreign oil and gas. <\/p>\n\n\n\n
The Treasury has reportedly calculated that householders may have to pay up to \u00a31,000 more per year due to an increase in interest rates, which is expected to be 0.75%, which has a knock-on effect for mortgages. <\/p>\n\n\n\n
In addition, Britain would have to pay more for imports since Labour intends to block new investment in North Sea oil and gas (by prohibiting new extraction licences), as the much-maligned protest group Just Stop Oil has demanded. <\/p>\n\n\n\n
According to the Treasury, “significantly higher interest rates could cause financial and market stability risks, leading to a recession.” <\/p>\n\n\n\n
Labour first proposed the changes in 2021, before the cost-of-living crisis erupted, and senior party officials have suggested that their ideas may now have to be scaled back. <\/p>\n\n","protected":false},"excerpt":{"rendered":"
Labour’s pledge to invest \u00a328 billion each year in combating climate change could have a significant impact on millions of homeowners, since interest rates might skyrocket, causing mortgage prices to … <\/p>\n