Cramlington hit severely hard due to Governments 'Economic Crisis'

Cramlington in Northumberland, a new Town on the edge of the Tyne and Wear conurbation has, since the huge loss traditional industry from surrounding areas in the 1980's fared very well, surviving numerous downturns due to its geographical position, sitting adjacent to the A1, A19 and with an open and well used train station on the east coast mainline serving residents well and making travel to work easy for most.

That bliss according to local sources is all about to change with the Bank of England 14th interest rate announcements since the Government accepted the Liz Truss mini budget following the political demise of a Conservative Prime Minister who lied to Parliament.

The Bank of England has raised its key interest rate by a quarter of a percentage point to a 15-year peak of 5.25%. Unlike the US Federal Reserve or the European Central Bank, the BoE's Monetary Policy Committee gave little suggestion that rate hikes were about to end as it battles high inflation. Governor Andrew Bailey stressed that borrowing costs were likely to stay high for some time. Sterling dipped after the announcement and financial markets priced in a two-thirds chance of another rate rise to 5.5% in September. 

The BoE forecast inflation would fall to 4.9% by the end of this year. Yael Selfin, chief economist at KPMG, said that it may take two years until rates start to fall again. With Conservative MP's quoted in the national press stating that 'people must be made poor to help them slow inflation to their target level'.

In Cramlington, an area which has seen some of the highest number of new homes constructed in the North-East region, the last 12 months of energy and mortgage rate rises have been dire for families who have seen their savings disappear and their lives changed for the worse. The news that inflation at all levels will strip them not only of cash but of their dignity over the next two years is devastating and with its peer Council, Northumberland County Council backing out of building new social housing stock for the last six years there's no fall back position for those who find themselves in dire consequences.

With the further news that the retail sector may lose one of Cramlingtons longest serving partners, Wilko, from its shopping precinct and that other non food outlets are finding custom hard to come by, Cramlingtons personal problems for many families may spread like wildfire across the whole town.