Question to the HM Treasury:

To ask Her Majesty's Government what is the total revenue already accrued to the Treasury as a result of inflation that exceeds the Government's two per cent target.

The Office for National Statistics (ONS) publishes monthly Public Sector Finances data, including public sector current receipts. However, there is no information available that breaks down the impact of inflation and other economic factors on these data.

The Treasury does not produce fiscal forecasts, the independent Office for Budget Responsibility (OBR) are the government’s official forecaster. Inflation has a range of impacts on the public finances and previous OBR forecasts have shown how inflation can also increase spending on welfare and debt interest. The OBR will produce an updated forecast alongside the next Budget, which will reflect the impacts of an updated inflation outlook on both revenues and spending.

The government is using all available tools to combat and reduce inflation – strong independent monetary policy, fiscal responsibility, and supply side reform.