Tax cuts outlined in the Conservative Party manifesto would lead to a second “mortgage bombshell,” Rachel Reeves has claimed.
Labour’s shadow chancellor said the tax cuts outlined by Rishi Sunak earlier would fuel extra borrowing and send the cost of the average mortgage soaring by £4,800 over the next five years.
Speaking at a central London press conference responding to the Tory manifesto, the shadow chancellor said: “The analysis that we have conducted since publication has identified £71 billion of unfunded commitments over the course of the next parliament.
“The consequence of an increase in day-to-day borrowing to fund the commitments made in this manifesto would amount to a second Tory mortgage bombshell, because higher borrowing at this scale would force the Bank of England to increase interest rates.
“The result would be an increase in the average mortgage totalling £4,800 over the course of the parliament.”
