Rishi Sunak is warned mortgage mayhem will ‘dwarf’ energy bills crisis

Rishi Sunak has been warned that mortgage mayhem will ‘dwarf’ the energy bills crisis – with Labour‘s poll lead already soaring.

The PM is scrambling for ways of shifting the focus from the massive hit Brits are suffering from spiking interest rates. He will unveil an NHS revival plan later this week.

But Tories are warning that the pain being heaped on homeowners will dominate the run-in to the general election next year. Analysis suggests that voters in London and the South East who took typical mortgages in 2020-21 will be at least £5,000 worse off.

There are mounting signs that the misery is already feeding through, with polls this weekend showing the Conservatives slumping between 18 and 25 points behind Keir Starmer‘s party.

YouGov research put the Tories on just 22 per cent, down two from last week, while Labour was up four on 47 per cent.

Opinium estimated that Sir Keir’s advantage had increased by six in a fortnight to 18 points, with Mr Sunak’s personal ratings they lowest the firm has ever detected at minus 23.

Meanwhile, MPs have been renewing demands for immediate tax cuts despite both Mr Sunak and Chancellor Jeremy Hunt ruling them out for fear of fuelling inflation.

YouGov research put the Tories on just 22 per cent, down two from last week, while Labour was up four on 47 per cent

The Bank of England hikes interest rates by another 0.5 percentage points last week

Analysis by the Public First consultancy for the Observer suggested those under the age of 45 face the biggest rises, as interest payments make up more of their mortgage.

Rachel Wolf, a founding partner of the company who co-authored the 2019 Tory manifesto, said: ‘The consequence of ever-rising house prices, particularly for squeezed millennials and those in the south-east, will be devastatingly clear in the next year.

‘With the end of low interest rates, the parts of middle Britain that aren’t yet retired will suffer in a way that for them will dwarf the energy bill crisis.’

Writing in the Sunday Times, the PM has vowed the ‘biggest workforce training expansion’ in the history of the health service.

Pointing to the country’s reliance on ‘attracting talented people from overseas rather than recruiting at home’, Mr Sunak said his NHS Long Term Workforce Plan will ‘build the health workforce of the future’.

‘It will be a 15-year plan to give the NHS certainty, because we recognise it takes time to train these staff, who are among the most highly skilled in our society,’ he said.

‘We will be using the latest techniques and innovations to streamline the journey from classroom to clinic, to get more patients the care they need. And it will be backed by government funding and support, balanced against the wider pressures on the economy.’

Mr Sunak described the blueprint as the ‘cornerstone’ of his Government’s vision for ‘a better, more modern healthcare system’, adding: ‘I feel a great responsibility to ensure our NHS endures.’