A potential turning point
Because politics isn't separate from our individual lives.
So we have a new Government in the UK. One which, one the surface, looks like it’s bucked the trend in the ‘rise of the right.’
Keir Starmer’s first speech as Prime Minister was pretty excellent; he talked about restoring trust in politics, serving the whole country, and building stability. It was also great that he acknowledged the achievement of British Asian Rishi Sunak in becoming Prime Minister, saying this had required “an extra effort that… should not be underestimated by anyone.”
The other good news was that Parliament is now the most representative of the country it has ever been. A record number of female MPs have been elected (making them around 40% of the total number of MPs), and the cabinet is diverse on background too.
On the flip side, two female MPs have spoken about the abuse and harassment they and their teams have experienced during this election campaign. One campaigner had her car tyres slashed. Many were being filmed while canvassing. One event was gatecrashed by masked men, terrifying people in attendance.
Jess Phillips MP couldn’t bring her children, nor the family of murdered MP Jo Cox, to the campaign with her. This isn’t democracy.
The other worrying factor is the rise of Reform UK. The party won 4 seats, but over 4.1 million votes, coming in third behind the Conservatives’ 6.8 million. It came second in a horribly large number of constituencies.
It speaks to the discontentment of many, that’s not to be ignored. But it also feeds on promising the moon, stirring up a hatred of ‘the other’ and generating media coverage. I was on a train on Friday, where a young man spent the 30 minute journey just watching videos of the sneering Nigel Farage.
This is a man who loudly supports Trump and Putin, and has aligned himself with men who hate women like Andrew Tate.
It didn’t feel great.
So, while there’s been a victory, it’s not one to be basking in. There are lessons to be learned from the US, where simply ‘not being Trump’ looks like it won’t be enough to stave off a second term from a convicted felon. The good news is that Labour seem to have this awareness.
Hopefully they can make Britain great again (or at the very least, less bad).
1. What does the Labour election win mean for your money?
This is all based on manifesto pledges. And I’ve pulled out the things most relevant to Money Brunch readers.
Money
No increases in income tax, National Insurance or VAT
This excludes ‘fiscal drag’ - which means, as wages go up over time, more people will be entering higher income tax bands
Barring the use of offshore trusts to get around inheritance tax (IHT) - a way to tax the wealthy
Ending tax breaks for private school fees (so parents now have to pay tax on these fees)
Reviewing private pensions and then reforming these (but no idea yet what this will look like)
Opening hundreds of banking hubs across the UK, to increase face-to-face access to banking services
Housing
Replacing leaseholds with commonholds for flats
Scrapping “unfair” maintenance charges
Ending no fault evictions immediately (as part of introducing better rights for tenants)
Private tenants getting the same protections from damp and mould that currently only apply to social housing
But, of course, nothing is certain. (Here are some of the new Prime Minister’s U-turns on previously made policy commitments).
On 17 July, it will be the King’s Speech - where he’ll outline the Government’s policy priorities. And the Budget will come sometime in the Autumn.
2. Consumer borrowing doubled in May - what this means
The Bank of England publishes monthly figures about lending to businesses and individuals. This is an important piece of information in understanding what’s going on in the economy.
In May:
The amount of money that individuals borrowed almost doubled to £1.5 billion (there had been a £0.6 billion drop in April)
This comes from credit cards, car financing and personal loans
Households put £5.3 billion into savings
The majority of this went into ISAs (£4.2 billion), following a record amount deposited in one month in April - £12.3 billion (this was the highest ever recorded figure since this research began in 1999 - and no doubt driven by high interest rates)1
Mortgages are the other key indicator of what’s going on with individuals:
Mortgage repayments went up, and the amount of money borrowed via mortgages went down, indicating that people are trying to reduce the amount they owe on mortgages2
The number of mortgage approvals stayed roughly the same - 60,800 in May, v 60,000 in April
This indicates that the number of house purchases shouldn’t go up too much either
But, of course, it excludes those buying using cash only - typically rental property owners - who may be buying more houses now at cheaper rates
3. Car windshield damage is becoming more prevalent, but insurers may leave it out of their policies
What’s happening?
The number of chips on windscreens went up by 4% on last year
And the number of full screen replacements went up by 13%
Why?
Roads are bad
More extreme weather puts more pressure on the glass
Heated windshields could lead to more cracking in the winter
What’s the problem?
Car insurance prices have been increasing, so insurers have been leaving elements like windshield cover out, in order to remain more competitive
What should I do?
Check your policy to see if you’re covered
Check the excess on your policy for this type of claim
When renewing, you can:
Add standalone windscreen cover to most car insurance deals for around £20 to £30 a year
Buy a standalone policy for around £50
✨ Other things! ✨
MONEY
How scammers, touts and bots have taken over driving tests, forcing learners to choose between taking the black market route (giving away their personal details and paying £60 - £300 more for a test), or playing by the rules (waiting months for a test and paying out hundreds in driving lesson fees while waiting for the test)
Ready to combine finances with your partner? You have options
LIFE
It’s fine to break your exercise streaks
Greece has introduced legislation for a six-day workweek for shift workers due to a shrinking population and shortage of skilled workers 😕
How Gen Z’s experience of friendship has been decimated by social media
Sabrina Carpenter’s cover of Chappell Roan’s Good Luck Babe is phenomenal
It has come to my attention that you have to log in to Substack to engage with this article. The occasional pieces of offline feedback from subscribers (friends) shall suffice 🫶
If, however, you are interested in exploring a nice, wholesome part of the internet, I really do recommend exploring Substack. It’s like Twitter in the early days. And there’s so much great writing here, on all sorts of topics.
Know someone who would enjoy this in their inbox on a Sunday morning?
When interest rates were low, the amount of interest being earned was well below the taxable amount. Higher interest rates have pushed many savings pots into earning more in interest, which becomes taxable
Mortgages are now more expensive