The Scottish National Party (SNP) has issued a stark warning that Labour’s latest budget is “pouring fuel on the cost-of-living crisis fire,” as major lenders raise mortgage rates, intensifying financial pressures on households.
This week, Nationwide Building Society announced it would apply new rates to mortgage applications, with other major players, including HSBC, Santander, TSB, and Virgin Money, quickly following suit.
The hikes have come in the wake of Labour’s budget announcements, which industry leaders across sectors warn will push costs even higher for consumers.
Supermarkets, farmers, and telecom providers have all sounded the alarm over the anticipated impact of Rachel Reeves’ budget, predicting an array of price hikes that will ripple across essential goods and services.
Retail giants M&S and Sainsbury’s recently highlighted how National Insurance increases, coupled with proposed cuts to farm support, would escalate food prices and strain household budgets.
This sentiment is echoed by the National Farmers’ Union (NFU) President, Tom Bradshaw, who expressed deep concerns, saying Labour’s financial plan could jeopardise the next generation’s ability to produce British food sustainably and look after the environment.
Telecom firms have also criticised the budget, with industry representatives from BT warning that the new NI hike will add around £100 million to their annual wage bill.
This additional cost is likely to be passed on to consumers through higher mobile and internet prices, further squeezing household budgets already stretched by rising energy bills and inflationary food costs.
SNP economy spokesperson Dave Doogan MP underscored the financial toll on Scots, stating:
“Labour’s budget is piling misery onto households, with food prices set to spiral and mortgage rates rising – it’s increasingly clear that Labour’s promises of ‘change’ have come at the expense of working families.”
The SNP argues that the effects of this budget will hit not only Scotland’s small businesses but also the everyday consumer, as retailers, producers, and lenders absorb the cost and inevitably pass it along.
From supermarket tills to mortgage statements, Scots are likely to see the fallout from Westminster’s decisions in their day-to-day expenses.
With each passing day, it seems more apparent that Labour’s financial policies could deepen the cost-of-living crisis, burdening Scots and driving up costs in a climate where every penny counts.
