Spring Forecast

Yuan Yang Excerpts

Tuesday 3rd March 2026 Commons Chamber

[Yuan Yang (Earley and Woodley) (Lab)]

I thank the Chancellor for her strong statement and, in particular, for her words on deepening our alliances with our European partners. This is crucial for bringing down the cost of food and for healing the economic self-harm done by the Conservatives. The Bank of England has said that her cuts to energy bills will help bring inflation down to around its target from next month. Will she commit to going further and continue to shield our constituents from global price shocks?

[Rachel Reeves]

The Bank of England forecast that the actions that I took in the Budget last year would reduce inflation by around 0.4 percentage points, and that inflation will be back close to target from April. That reflects not just taking £150 off energy bills, but freezing prescription charges and rail fares. The events unfolding in Iran and the middle east have resulted, over the last couple of days, in gas prices going up by more than 60% and oil prices by more than 10%. That shows why our plan to take money off energy bills and ensure that our public finances are in a stronger place mean that we are in a better place than we would have been 18 months ago, after the mess left by the Conservatives.