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Tory voters have eyes on higher saving rates

More profitable returns at the bank trump cheap borrowing for traditional party supporters

By Will Hazell and Edward Malnick

‘People want to save their money reliably, not live beyond their means on borrowed money’

VOTERS who backed the Conservatives at the last election would prefer to save more profitably through higher interest rates than borrow more cheaply as a result of lower rates, polling has found.

More 2019 Tory voters believe that public spending is too high than too low or “the right amount”, according to the survey. Redfield & Wilton Strategies polled 930 individuals who voted for the Conservatives in the 2019 election.

On saving and borrowing, respondents were posed the following statement and question: “Low interest rates set by the Bank of England typically benefit borrowers by making it cheaper to pay off debt. Higher interest rates typically benefit savers by allowing savings to grow more.

“Which is more important to you: being able to borrow more cheaply or being able to save more profitably?”

Fifty-six per cent said they preferred to save more profitably, compared with 29 per cent who opted for borrowing more cheaply. Fourteen per cent said they did not know.

The findings suggest that higher interest rates may not be universally unpopular, despite panic among some Conservative MPs about hikes by the Bank of England and a potential backlash by constituents facing increased mortgage payments.

Philip van Scheltinga, director of research at Redfield & Wilton Strategies, said: “Our polling finds that people want to save their hard-earned money reliably, not live beyond their means on borrowed money. Last week’s Budget, which allows taxpayers to keep more of their money and will force the Bank of England to raise rates, is a first step towards bringing voters back towards the economic normality they desire.”

However, when it came to a decision by the Bank of England on whether to raise interest rates this month, there was a three-way split.

Twenty-six per cent said they wanted to see interest rates increase, 25 per cent wanted them cut and 27 per cent wanted them to stay the same.

On public expenditure, 47 per cent said the Government is spending too much, compared to 26 per cent who felt it was the right amount and 10 per cent who believed it is not enough.

While the polling might provide Liz Truss with some reassurance that she is pursuing the correct strategy, separate research by More in Common to be unveiled at the Conservative Party conference in Birmingham tomorrow suggests the Tories risk losing votes on their Right flank.

In focus groups in Red Wall seats over the past fortnight, More in Common identified a new group of voters – categorised as “disillusioned defectors” – who could power a surge in support for the populist Right similar to that seen in Italy, Sweden and France.

Testing a series of “populist policies” from leaving the European Court of Human Rights, to increasing criminal sentences and ending public funding for diversity and inclusion initiatives, a core group of about 20 per cent of the Tory vote in the Red Wall consistently said they would support a party that advocated these policies.

Analysis of Red Wall seats found that if this group were to switch their backing to a new populist party the Tories would lose 20 seats to Labour even if Sir Keir Starmer’s party did not gain a single extra vote.

At a focus group in the South Yorkshire constituency of Don Valley on Thursday, voters commented on the disorder in financial markets this week.

Daniella, a nurse, said: “The pound has crashed. It has massively affected banks with mortgages. It’s only going to put cost of living up even more.”

But despite the chaos, the group did not want to see another change in leadership that could open the door to more turmoil. Shelley, a teacher, said: “We’ve had too much change already and I think we need to get some policies in place that have time to start working.”

Luke Tryl, the UK director of More in Common, said: “Anxiety about the reaction to the mini-Budget, the rising cost of living, and a perception that the Conservatives haven’t yet delivered on levelling up, tackling crime or stopping small boats, mean that if things carry on as they are, the door could be open to the next Nigel Farage to eat into the Conservative vote.

“When we asked voters who left the Labour Party in 2019 why they switched to the Conservatives they gave us three reasons: Brexit, Boris and Jeremy Corbyn, none of which now apply. Instead, our research finds that a chunk of these voters are in the market for something new and would be tempted to vote for a new party on the populist Right.”

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2022-10-02T07:00:00.0000000Z

2022-10-02T07:00:00.0000000Z

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Daily Telegraph