IMF Economic Outlook

Debate between James Cartlidge and Anna Firth

Tuesday 31st January 2023 Commons Chamber

[James Cartlidge]

On the contrary, the whole point of why we mention the pandemic is not to say that we are the only country affected, but to explain the global headwinds that we face as a country. The hon. Lady talks about energy costs, but the Office for Budget Responsibility’s forecast is that the energy price guarantee will reduce the peak of inflation in this country by 2.5%. Inflation is an issue and it is global, but we are taking strong measures to ensure we deliver the Prime Minister’s target of halving it.

[Anna Firth (Southend West) (Con)]

Is it not right that the IMF welcomed the autumn statement and said it struck

“the right balance between fiscal responsibility and protecting growth and vulnerable households”?

Given that the IMF has also said that cumulative UK growth over 2022 to 2024 is predicted to be higher than in Germany and Japan and similar to the USA, is that not exactly why we should stick to the measures set out in the autumn statement?

[James Cartlidge]

My hon. Friend makes a brilliant point and reminds us that not only did the IMF talk this morning about our strong performance in 2022, but at the autumn statement it welcomed those measures and recognised that a balance must be struck between fiscal consolidation and supporting the most vulnerable. The best example I can give is that from April, far from support with high energy costs being withdrawn, there will be a new £900 payment for families on benefits. That shows we are getting the balance right between the fiscal discipline necessary to work with the Bank of England to reduce inflation and ensuring that families are supported through these challenging times.