Many people are understandably concerned about the Bank of England’s decision to raise interest rates. I fully recognise this is an anxious time for families and businesses across the country as we face rising prices and higher mortgage payments. Interest rates are going up because of inflation, which is a shared global challenge. The global economy has faced two unprecedented shocks in the last three years. The Covid-19 pandemic reaped havoc on supply chains and Putin’s war in Ukraine has resulted in gas prices more than trebling. These shocks have fed through to household bills, to the prices we pay at the shops and to the costs of running a business. The UK Government has stepped in with extraordinary support worth £94bn - £3,300 per household – over this year and last. Our action to hold down energy bills and freeze alcohol and fuel duty is helping to tackle inflation. But the only way we can ease pressure is by getting inflation down further. All governments agree decisive action is needed to control inflation because of the impact it has on our daily lives and the uncertainty it creates for businesses. So central banks are raising interest rates. The UK’s current inflation rate is 8.7 per cent, with Prime Minister Rishi Sunak promising to half that and ultimately bring it back down to its two per cent target. Unlike the Eurozone area, Britain is not in a recession and there are nine EU countries with higher inflation rates. The worst is Hungary with 21.5 per cent. Dealing with inflation is difficult – it will take time and relentless focus. But we CAN get inflation down. The most important thing we can do is stay disciplined and manage the public finances responsibly, while supporting the Bank of England.
Newport was the host city for Wales National Armed Forces Day on Saturday, a hugely important event to celebrate and say thank you to the men and women who dedicate themselves to the protection of the United Kingdom. I joined my former Army Reserve unit, 104 Air Defence Regiment, to honour and celebrate the British Armed Forces community; from currently serving troops to service families, veterans and cadets. It was particularly poignant for me as my late father, Cllr Peter Davies, was instrumental in ensuring Newport was one of the first councils in Wales to sign the Armed Forces Covenant.
It was great to see hundreds of people, if not thousands, attend Monmouth Carnival Sunday. It is not often that I praise Labour politicians, but special congratulations to the Mayor of Monmouth – Cllr Tom Kirton – who turned up in his full regalia on one of the hottest days of the year!
*Published in the Monmouthshire Beacon on 28 June 2023 and Abergavenny Chronicle on 29 June 2023*