Labour has unveiled a five-point plan to tackle the mortgage crisis – but Rishi Sunak is insisting that “beating inflation has to be the priority”.
The Opposition and the prime minister were speaking ahead of the Bank of England preparing to hike interests rate yet again after inflation in the UK defied expectations and failed to fall.
It has led to warnings of a “ticking time bomb” for homeowners whose mortgage payments are likely to soar by hundreds of pounds per month, sparking fears of a rise in home repossessions.
Labour is calling on the government to immediately adopt five measures, which include requiring banks to allow borrowers to switch to interest-only mortgage payments and lengthen the term of their mortgage period.
Labour’s plan also includes:
• Requiring lenders to reverse any support measures when the borrower requests • Requiring lenders to wait a minimum of six months before initiating repossession proceedings • Instructing the FCA (Financial Conduct Authority) to urgently issue consumer guidance to prevent the changes from impacting credit scores
Labour said the mortgage crisisis worse in the UK than neighbouring advanced economies such as France and Ireland, with the gap in rates costing a typical household in Britain £1,000 more in repayments.
Shadow chancellor Rachel Reeves said millions of people “face a mortgage catastrophe made in Downing Street”.
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She added: “Our five-point plan to ease the Tory mortgage penalty offers practical help now, while our commitment to fiscal responsibility and growth will secure our economy for the future.
“Instead of squabbling over peerages and parties and ruling out any action on mortgages, the Tories should be taking responsibility and acting now.”
But the prime minister appears to be sticking to his guns with his insistence that any intervention could make inflation worse in the long run.
In a speech being delivered by Mr Sunak on Thursday, he will acknowledge the “concerning” time for families and businesses.
But he will stress that failing to get a grip on inflation now will mean the damage to the economy will be worse and longer lasting.
He will say: “I feel a deep moral responsibility to make sure the money you earn holds its value.
“That’s why our number one priority is to halve inflation this year and get back to the target of 2%.
“And I’m completely confident that if we hold our nerve, we can do so.”
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3:00
‘Sticky’ inflation explained
Pressure grows on Sunak
Downing Street is coming under increasing pressure to intervene as the UK’s mortgage crunch deepens.
The Bank of England is expected to raise interest rates on Thursday for the thirteenth time in a row – having already hiked it from 0.1% in December 2021 to 4.5%, where it currently stands.
It comes after disappointing inflation figures showed price rises have not eased, with the rate remaining at 8.7%.
This puts the government’s pledge to halve inflation by the end of the year in jeopardy.
And high interest rates mean more expensive borrowing, sending mortgages higher.
The independent think tank said the average mortgage-holding household faces paying nearly £280 more each month compared with this time last year – with 30 to 39-year-olds paying nearly £360 more.
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1:14
Starmer grills Sunak on ‘mortgage catastrophe’
‘Tidal wave of repossessions’
Seperately, Liberal Democrat leader Sir Ed Davey urged ministers to act now to prevent a “tidal wave” of home repossessions – with an emergency mortgage protection fund paid for by a reversal of tax cuts for big banks.
Analysis by the party reveals 1,250 homeowners have had to hand back the keys to their homes after falling behind on their mortgage repayments since last year’s ill-fated mini-budget, which plunged the market into turmoil.
Lasting for a year, the protection fund would provide targeted support in the form of grants of up to £300 a month to homeowners on the lowest incomes and those suffering from the sharpest rises in rates.
And the Green Party stressed the need for controls on rents to prevent landlords passing on hikes on buy-to-let mortgages to tenants.
Chancellor Jeremy Hunt will meet lenders on Friday to ask what help they can give to struggling borrowers and see what flexibilities they can offer to those in arrears.
But Downing Street made clear the chancellor will not be forcing lenders to take action.
The prime minister’s official spokesman said: “We’re not seeking to intervene in commercial decisions for banks offering mortgages.
“We want banks to be offering the best possible products to consumers, that’s in everyone’s interest. And so we will be looking to dig into what more they can be doing in this space.”
MP Mike Amesbury has pleaded guilty to assault by beating for punching a man in Cheshire.
The Runcorn and Helsby MP appeared at Chester Magistrates’ Court on Thursday morning where he admitted attacking 45-year-old Paul Fellows in Main Street, Frodsham, Cheshire, in October.
Speaking outside the court, he said the incident was “highly regrettable” and he was “sincerely sorry” to Mr Fellows and his family.
CCTV footage showed Amesbury, who has been an MP since 2017, punching Mr Fellows on the ground.
Other previously released videos from another angle show Amesbury punching Mr Fellows repeatedly after knocking him to the floor as members of the public intervened.
It was reported to police at 2.48pm on Saturday 26 October.
The court heard how Amesbury told Mr Fellows “you won’t threaten your MP again” after punching him in the head with enough force to knock him to the ground.
The 55-year-old politician is currently an independent MP after he was suspended by Labour at the end of October when the CCTV footage emerged.
He will continue to be suspended so remains as an independent.
The court heard Mr Fellows recognised Amesbury in the taxi rank in Frodsham town centre at about 2am on 26 October last year.
Both were alone and had been drinking.
Alison Storey, prosecuting, said Mr Fellows approached the MP to remonstrate about a bridge closure in the town and CCTV then shows they spoke for several minutes but there was no aggression or raised voices.
Mr Fellows then started to walk away but Amesbury re-engaged and was heard saying “what” a few times before shouting it.
The victim then put his hands in his pockets and turned towards the taxi queue and when he turned back Amesbury punched him in the head, knocking him to the ground.
He then punched Mr Fellows again, at least five times, Ms Storey said.
She told the court he was then heard saying “you won’t threaten your MP again will you”.
Amesbury was voluntarily interviewed under caution by Cheshire Police in October and was charged with common assault on 7 November.
At the time, Amesbury said what happened was “deeply regrettable” and he was co-operating with police.
A Labour Party spokesman said: “It is right that Mike Amesbury has taken responsibility for his unacceptable actions.
“He was rightly suspended by the Labour Party following the announcement of the police investigation.
“We cannot comment further whilst legal proceedings are still ongoing.”
Amesbury is set to be sentenced next month. If he is sent to prison or given a suspended sentence he could lose his seat.
A sentence of less than a year, even if it is suspended, would leave him liable to the recall process, which would trigger a by-election if 10% of registered voters in his seat sign a petition calling for it.
A jail term of more than a year would mean he automatically loses his seat.
Patients are dying in corridors and going undiscovered for hours while the sick are left to soil themselves, nurses have said, revealing the scale of the corridor crisis inside the UK’s hospitals.
In a “harrowing” report built from the experiences of more than 5,000 NHS nursing staff, the Royal College of Nursing (RCN) found almost seven in 10 (66.81%) say they are delivering care in overcrowded or unsuitable places, including converted cupboards, corridors and even car parks, on a daily basis.
Demoralised staff are looking after as many as 40 patients in a single corridor, unable to access oxygen, cardiac monitors, suction and other lifesaving equipment.
Women are miscarrying in corridors, while some nurses report being unable to carry out adequate CPR on patients having heart attacks.
Sara (not her real name) said she was on shift when a doctor told her there was a dying patient who had been waiting in the hospital’s corridor for six hours.
“It took a further two hours to get her into an adequate care space to make her clean and comfortable,” she told Sky News.
“That’s a human being, someone in the last hours of their life in the middle of a corridor with a detoxing patient vomiting and being abusive behind them and a very poorly patient in front of them, who was confused, screaming in pain. It was awful on the family, and it was awful on the patient.”
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Dead patients ‘not found for hours’
A nurse working in the southeast of England quit her job after witnessing an elderly lady in “animal-like conditions”.
She told the RCN: “A 90-year-old lady with dementia was scared, crying and urinating in the bed after asking several times for help to the toilet. Seeing that lady, frightened and subjected to animal-like conditions is what broke me.
“At the end of that shift, I handed in my notice with no job to go to. I will not work where this is a normal day-to-day occurrence.”
Another nurse in the South East said a patient died in a corridor and “wasn’t discovered for hours”.
Sara told Sky another woman needed resuscitating after the oxygen underneath her trolley ran out. Sara was one of just two nurses caring for more than 30 patients on that corridor.
“I have had nightmares – I have a nightmare that I walk out in the corridor and there are dead bodies in body bags on the trolleys,” she said, growing visibly emotional.
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One nurse, who spoke to Sky News, said the conditions were “undignified” and “inhumane”.
“It’s not just corridors – we utilise chairs, cupboards, whatever space is available in the hospital to be repurposed into a care space, in the loosest sense of that term. These spaces are unsafe.”
Some spaces, she said, don’t even have basic electricity for nurses to plug in their computers.
The nurse, who spoke to Sky on the condition of anonymity, said she has experienced burnout multiple times over the state of her workplace.
“I have come to the conclusion this week I don’t think I can continue working in the NHS or as a nurse,” she said.
“It breaks my soul; I love what I do when I am able to do it in the right way. I like caring for people, I like making people better, I also like providing a dignified death.”
She added: “I want to look after the institution I was born into, but for the sake of my family and my mental health, I don’t know how much more I can give.”
With 32,000 nursing vacancies in England alone, data also shows around one in eight nurses leave the profession within five years of qualifying.
Staff ‘not proud of the care they are giving’
The Royal College of Nursing (RCN) says the testimony, which runs to over 400 pages, must mark a “moment in time”. In May 2024, the RCN declared a “national emergency” over corridor care in NHS services.
Professor Nicola Ranger, RCN general secretary and chief executive, said: “At the moment, [nursing staff] are not proud of the care they are giving.”
“We hear stories of escalation areas and temporary beds that have been open for two years,” she added. “That is no longer escalation, it’s understaffed and underfunded capacity that is pretty shocking care for patients. We have to get a grip on that.”
“The NHS used to be the envy of the world and we need to take a long hard look at ourselves and say ‘what needs to change?’
“The biggest concern for us is that the public Is starting to lose a little faith in their care, and that has to stop. We absolutely have to sort this out.”
Commenting on the RCN’s report, Duncan Burton, chief nursing officer for England, said the NHS had experienced one of the “toughest winters” in recent months, and the report “should never be considered the standard to which the NHS aspires”.
“Despite the challenges the NHS faces, we are seeing extraordinary efforts from staff who are doing everything they can to provide safe, compassionate care every day,” he added. “As a nurse, I know how distressing it can be when you are unable to provide the very best standards of care for patients.”
Have you experienced corridor care in an NHS hospital? Get in touch on NHSstories@sky.uk
A 62-year-old British woman has died in the French Alps after colliding with another skier, according to local reports.
The English woman was skiing on the Aiguille Rouge mountain of Savoie at around 10.30am on Tuesday when she hit a 35-year-old man who was stationary on the same track, local news outlet Le Dauphine reported.
It added that emergency services and rescue teams rushed to the scene but couldn’t resuscitate the woman, who died following the “traumatic shock”.
The man she collided with was also said to be a British national.
Local reports said the pair were skiing on black slopes, a term used to describe the most challenging ski runs with particularly steep inclines.
A spokesperson for the Foreign, Commonwealth and Development Office told Sky News: “We are supporting the family of a British woman who died in France and are in touch with the local authorities.”