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Written question asked by Rob Roberts (Independent (affiliation)) on Thursday, 11 January 2024, in the House of Commons. It was due for an answer on Wednesday, 17 January 2024 (named day). It was answered by Bim Afolami (Conservative) on Wednesday, 17 January 2024 on behalf of the Treasury.

Inflation

Question

To ask the Chancellor of the Exchequer, pursuant to the Answer of 11 January 2024 to Question 8220 on Inflation, what specific (a) fiscal and (b) other steps he has taken to help reduce inflation; and what the outcome of each of those steps was.

Answer

There are four key things the government has done to reduce inflation:

  1. Remaining steadfast in our support for the Bank of England as it takes action to return inflation sustainably to the 2% target.
  2. Keeping borrowing under control. Borrowing is lower this year and next than it was forecast to be in the Spring.
  3. Introducing ambitious supply-side measures to support non-inflationary growth, including delivering full expensing.
  4. Boosting labour supply. Labour market conditions are a key problem affecting UK businesses’ growth, as well as a significant driver of domestic inflation. Together, the packages at Autumn Statement and Spring Budget 2023 were the two largest increases to labour supply and potential GDP resulting from policy the OBR has ever scored.

The OBR confirms policies in the Autumn Statement reduce inflation next year and do not “have a material impact on the path of inflation” over the scorecard.

Inflation has more than halved, but it remains a challenge. The OBR forecasts inflation to return to the 2% target in the first half of 2025 and helping the Bank of England in its fight to do so remains a key focus.

Secondary information

Type
Written question
Reference
9306
Session
2023-24
Related items
Inflation
Thursday, 11 January 2024
Written questions
House of Commons
Subjects
Inflation Autumn statement
Contains statistics
Yes
Link
View this Written question on www.parliament.uk