Oral question asked in the House of Commons, by Sharon Hodgson (Labour). It was answered by Gordon Brown (Labour) on Thursday, 11 May 2006 on behalf of the Treasury.

Inflation Target

Question: What recent representations he has received on the inflation target; and if he will make a statement.

Answer: The Bank of England inflation report set out yesterday states that we expect to meet our inflation target this year, next year and in subsequent years, as we have done each and every year since we came to power. To lock in public sector pay discipline and to maintain the momentum of a strengthening economy, we are today writing to all Departments to make it clear that public sector pay settlements must, in future, also be founded on meeting the 2 per cent. inflation target.

Secondary information