We expect families on limited incomes to curb spending – yet it’s the rich who should be doing our bit with greater taxation on wealth
The Bank of England’s monetary policy committee (MPC) has voted to keep interest rates at 5.25% in an attempt to curb inflation; the squeeze on homeowners, borrowers and renters continues. The thinking is that if we all just hunker down and get through this period of pain, the bank will meet its 2% inflation target and we’ll all start to feel better off.
Except, for some of us, this isn’t our experience at all. For millionaires like me, who own our homes outright, the decisions of the MPC make virtually no difference to our outgoings. Free from the shackles of high borrowing rates, we’re able to spend to our hearts’ content. In fact, for those with cash in the bank, higher interest rates actively boost income and spending power. There is cash to be spent on original artworks to decorate their several homes; and travel between residences, adding to both the climate and housing crises.
Phil White is a former business consultant and engineer, and is a founding member of Patriotic Millionaires UK
