Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what steps he is taking to reduce inflation.

Responsible decisions to support the Bank mean the UK has now turned a corner on inflation, but the government remains committed to ensuring inflation returns sustainably to its 2% target. There are four key things the government is doing to further reduce inflation whilst supporting growth:

• Remaining steadfast in our support for the Monetary Policy Committee of the Bank of England as it acts to return inflation sustainably to the 2% target.
• Boosting labour supply. Labour market conditions are a key problem affecting UK businesses’ growth, as well as a significant driver of domestic inflation. Across Spring Budget 2023, Autumn Statement 2023 and Spring Budget 2024 tax and labour market measures increase total hours worked by the equivalent of more than 300,000 full-time workers by 2028-29.
• Introducing ambitious supply-side measures to support non-inflationary growth, including delivering full expensing to boost investment. The OBR estimate the impact of government policy, including tax and labour market measures, announced at the past three fiscal events mean the economy will be 0.7% bigger by the end of the forecast.
• Since Autumn Statement 2023, borrowing has been lower than the OBR forecast. Borrowing is forecast to fall in every year to 2028-29. This would be the lowest level of borrowing as a share of GDP since 2001-02.

The OBR has concluded that measures in the Spring Budget – primarily freezes to fuel and alcohol duty – will reduce CPI inflation by 0.2% in 2024-25.