Profits and inflation

Early day motion 1428, tabled 6 July 2023 by Debbie Abrahams (Labour). Signed by 29 members.

That this House notes the Bank of England’s decision in June to increase interest rates to five per cent, the 13th consecutive rise; believes that while inflation must be reduced and contained, ordinary British people are not the drivers of inflation, including core inflation, and that there is evidence of profiteering by some banks and businesses; and resolves to ask the Financial Conduct Authority as the regulator of the banking industry to investigate (a) potential profiteering by some banks, for example, an extra £7 billion in profits directly from interest rate rises was reported in March from the big four banks: Barclays, HSBC, Lloyds and Nat West, (b) the guidance banks will be required to issue to borrowers, for example, temporary switches to interest only mortgage payments and lengthening the term of their mortgage period, (c) actions taken by banks under the Mortgage Charter to ameliorate repayment increases and (d) actions taken by banks to compensate savers after interest rate increases.

Signatures by party: Labour 18, Scottish National Party 4, Independent 3, Labour/Co-operative 2, Alba 1, Green 1.