M&S boss Archie Norman has warned that some families will not be able to afford to pay their mortgages next year if interest rates continue to rise.
The warning from the chairman of the British retailer comes as new Chancellor Jeremy Hunt U-turned on Liz Truss’s economic plan by cutting short the Government’s support on soaring energy bills.
UK households could now face a rise in interest rates to just over five per cent next year, as experts estimate energy bills could make a jump to an average of £4,300 a year.
This rate far surpasses what is outlined in The Energy Price Guarantee, which caps typical household and workplace bills at £2,500.
Inflation figures for September are also expected to show an increase in prices from 9.9% to more than 10%, adding to the painful squeeze on household budgets.
Archie Norman said that while inflation may start to fall by next summer, “the biggest problem facing households and businesses is now rising interest rates,” he said.
Energy market experts Cornwall Insight predict the typical energy bill could now hit £4,347 next April before falling back to £3,697 next July.
“Interest rates do have to rise, but if they rise as fast has been forecast, that’s really pretty bad for the consumer economy,” Mr Norman told LBC.
“It means that there’ll be households next year who can’t afford to pay their mortgage, and some will be Marks & Spencer customers, so I really do mind about that.”
