Question to the HM Treasury:

To ask His Majesty's Government what steps they are taking to bring inflation back to the target of two per cent; and when they expect that to be achieved.

Inflation has halved and was lower in Q4 2023 than had been forecast by the Office for Budget Responsibility (OBR) in the Autumn. Despite the progress there are four key things the government is doing to reduce it further.

• Remaining steadfast in our support for the Monetary Policy Committee of the Bank of England as it takes action to return inflation sustainably to the 2% target.
• Keeping borrowing under control. Borrowing is lower this year and next than it was forecast to be in the Spring and the OBR has forecast that government policies in the Autumn Statement will reduce inflation next year.
• 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.
• Introducing ambitious supply-side measures to support non-inflationary growth, including delivering full expensing to boost investment.