PM To Deliver Economic Update As Public Pressure For Mortgage Relief Mounts

Prime Minister Rishi Sunak is set to deliver a speech later today on the state of the British economy and his gov'ts efforts to curtail inflation and boost growth. While the gov't has so far proved reluctant to engage with the prospect of providing direct relief to mortgage holders as interest rates continue to rise, public pressure is mounting.

• Current polling from YouGov shows 62% of respondents believe the gov't has been handling the issue of rising mortgage costs 'fairly badly' or 'very badly'. Sunak's centre-right Conservative party has often used a perception of economic competence in the party as an electoral asset. However, polling is increasingly indicating that the party has lost this perception with many voters.
• The gov't faces a stark choice between stepping into the mortgage market to offer relief, potentially fuelling further inflation and hitting gov't finances, or run an election campaign in 2024 with many of the party's core home-owning voters feeling a significant economic impact from higher rates.
• Ahead of the speech, Sunak tweets: "[...] Like many countries, the UK faces profound economic challenges. [...] As well as providing immediate relief for people, I’ve been focused on tackling longer term problems [...]. That's why my top three priorities are to halve inflation, grow the economy and reduce debt. [...] I know things are difficult, but if we can hold our nerve I’m confident this plan will deliver."