Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of her policies on levels of inflation.

The independent Office for Budget Responsibility (OBR) assessed the impact of Government policies on the level of inflation. While noting they expect inflation to remain close to the 2 per cent target throughout the forecast period, the OBR forecast a temporary rise in inflation, driven by gas and electricity prices and the direct effect of policies announced in the Budget. They conclude that, on average, just under half of the higher inflation in 2025 and 2026 is due to the impact of policies in Autumn Budget 2024.

In March 2025 the OBR assessed that they expected the policies in the forecast to provide a very small boost to CPI inflation, increasing the price level by less than 0.1 per cent by the end of the forecast.

The Bank of England has the responsibility of controlling inflation, and the Government fully supports them as they take action to sustainably return inflation to the 2% target.