§ 12. Mr. HinchliffeTo ask the Chancellor of the Exchequer what was the monthly payment on an average mortgage in July 1988; and what was the comparable figure in February 1990.
§ Mr. LilleyThe figures are £128.63 and £190.31.
§ Mr. HinchliffeDoes the Minister share my concern about the clear connection between the huge increases in mortgage repayment figures and in homelessness? Is he aware that in Yorkshire and Humberside, during the 10 years of the present Government, homelessness has increased by 860 per cent? What are the Government doing to get to grips with the appalling human consequences of a high interest rate policy?
§ Mr. LilleyWe all recognise that high interest rates mean that families have to cut spending on other things for the time being. The level of repossessions in the past year was below that for the previous four years.
§ Mr. John MarshallDoes my hon. Friend agree that rising interest rates are an international phenomenon from which we cannot insulate ourselves? Does he further agree that a policy of increasing public expenditure as practised by Labour councils and advocated by the Labour Front Bench team would lead only to higher interest rates?
§ Mr. LilleyMy hon. Friend is correct. No Labour Government to which Opposition Members could point—let alone a Conservative Government—have succeeded in reducing inflation without a period of high interest rates.
§ Mr. Chris SmithThe Financial Secretary must be aware that millions of families are facing mortgage bills that are £100 more than they were two years ago. In Mid-Staffordshire, the average is £50 extra a month. It is no comfort to such families to be told that it is an international phenomenom. When will the Financial Secretary and the Government end the exclusive reliance on interest rates as a mechanism for taking demand out of the economy?
§ Mr. LilleyI recognise the difficulties of people with high interest burdens. We should remember, however, that under this Government living standards for the average family with two children and on average earnings have increased by 32 per cent. more than inflation. The index takes account of mortgage interest payments. Under the Labour Government, the increase was only 1 per cent.