03/04/2024
WE NEED AN ECONOMIC PLAN
One of the things that genuinely puzzles me is why the Conservatives claim that they are economically competent.
During Liz Truss' brief premiership she managed to spook the financial markets with her ill-considered plans. the result was that interest rates shot up.
Everyone with a mortgage has been paying for this since, and given that house prices are stratospherically high to begin with, the strain on family finances in a Borough like Rugby can be intolerable for many households.
Liz Truss was a CIMA qualified accountant, so should have been aware of the inevitable consequences of her hare-brained scheme. As someone who took the trouble to get financially qualified, I am genuinely embarrassed as part of that profession that she came up with something so bad.
The local Conservative administration has not done much better. There has been a growth in population thanks to a number of housing developments, and a number of commercial developments have sprung up around Leicester Road and Eden Park, as well as warehousing in Swift Valley. Many people in Newbold and Brownsover work in these warehouses, and Rugby is a hub for warehousing and distribution.
But hang on a second, are the people who are working there thriving? Not necessarily. Warehouse work typically pays around £16 per hour, the full time equivalent annual salary is just under £30,000, more with overtime, but no one should have to work excessive hours just to get by.
Can you spot the problem? A typical three bedroom home here in Rugby costs around £250,000. As an individual on an income of £30,000 per annum, with a 10% deposit, you can raise a mortgage of £90,000. If a couple has a combined income of £60,000, they may be able to borrow £250,000 at a stretch, but they will have to meet mortgage repayments of some £1,350 per month for 25 years. Raising a family is expensive. You may get lucky and see mortgage rates go down, but if they go up significantly (as they did when John Major was PM), you are at risk of losing your home.
The Conservative response is usually along the lines of "get a better job" or "do more overtime", but if local warehouse work and similar jobs are paying, at best, average earnings, this means looking outside of Rugby.
Rugby Borough Council under the Conservatives has no economic plan for Rugby that addresses this. Indeed, the recent consultation put out on the Local Plan just proposed more developments of warehouses on Green Belt and more houses being built that are unaffordable for the people who will be taking the jobs in these warehouses, resulting in more use of private rented accommodation, which, for a three bedroom house, is around £1,500 per month. It also proposed more unpopular development on the Green Belt in Newbold and Brownsover.
Historically, the Council has missed out on some £20m of investment because of it neglected to implement a Community Infrastructure Charge on developers. We are amongst a pretty exclusive club of local authorities that has failed to implement this. Just think what a difference £20m would have made to Rugby? The mind boggles.
To make matters worse, employers and investors in warehouses and logistics are no longer convinced that further development in this area is worthwhile for them.
So what would a Labour administration do that is different?
For a start, we wouldn't be putting out Local Plans that where we haven't done the basic maths. Rugby needs an Economic Plan that attracts employers that can offer the training and employment that results in well paid jobs, allowing local residents to invest in homes with some confidence that they can afford them. We need affordable housing, and we need facilities like shops, GP surgeries, schools, parks and leisure centres. Funnily enough, history shows that a well paid workforce with a stake in their community is good for employers too. Everyone wins.
Let's just repeat that. A well paid workforce with disposable income rather than an insecure workforce living hand to mouth will benefit all businesses.
It's time for us all to take control of our future. Vote for change.
