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  • Writer's picturePhillip Ullmann

Bank of England interest rate decision

The thing that concerns businesspeople most is uncertainty. And interest rates are probably the most important factor beyond our control.

When I ran one of the UK’s largest recruitment companies, placing over 125,000 people into work every year, it was essential to my own firm’s operations, as well as our 5,000+ clients that we had clarity over costs.

Right now, the financial authorities still have a tightrope to walk to get the economy moving in the right direction.

So, while we must pay attention to the Bank of England decision itself – widely expected to be the biggest rise in 30 years at 0.75% - it’s just as important to consider the underlying causes of inflation, the driver to recent rises.

My view is the true cause of the increase in prices is the exploitation of the market by the energy companies - this is the core problem and must be addressed.

Interest rate increases this Winter are likely to result in deaths as older people suffering fuel poverty may not be able to keep warm.

This cannot be acceptable and yet somehow it is.

One solution is to address the energy price increases - and as UK gas is 50% produced in UK fields, therefore we can fix the price.

If the companies decide to sell our gas overseas, we must turn them into civic trusts and make them accountable.

For the other 50%, we must prevent a cartel like system and work with other purchasers to act against any cartel and force them to reduce the prices.

Instead of handing money to the energy companies through subsidising consumer prices – in effect supporting them to distort supply – I want to see the Government support local communities through small businesses and the local organisations that bring people together, covenantally.

These enterprises are the backbone of our economy and with the right help can deliver the boost we need. My mission is to show that business acumen can be married to civic duty to deliver real growth, not just asset price inflation.

And aside from anything else, interest rates that extort and destroy people’s lives are immoral and a far cry from the covenantal thinking that could mean a less mercenary system, beholden to the market’s mercy.

In the Bible’s language, loans are a gift and interest illegal.

Today, interest rates are a curse blighting billions. Is there a lesson to be learnt?



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