The Treasury's response to Bank of England interest rates
decision is below.
A HM Treasury Spokesperson said:
“We have turned a corner in our fight against inflation and real
wages are rising, but we must keep driving inflation out of the
economy to reach our 2% target.
“By cutting taxes for hard working people and businesses, and
helping people into work, we are forecast to deliver the largest
boost to potential GDP on record.”
Notes to editors
Further information:
- The combined impact of the Autumn and Spring policy packages
is a permanent 0.5% increase in the level of potential output by
the end of the OBR’s forecast – equivalent to the aerospace
sector.
- And the OBR confirms that our Autumn Statement package does
not jeopardise our progress in controlling inflation while
simultaneously growing the economy. In the final year of the
forecast our measures reduce the overall tax burden by 0.7% of
GDP and get 78,000 extra people into work.
- To reward work, we have cut National Insurance for 29 million
people worth £9 billion per year, worth £450 for the average
employee on £35,400 and £350 for the average self-employed person
on £28,200.
- Full expensing is the biggest business tax cut in modern
British history worth over £50 billion over the next five years –
helping companies to invest for less.
- Since 2010, the UK has grown faster than France, Japan and
Italy, and Germany.
- Recent figures have shown that by 2021 the UK had recovered
faster from the pandemic than France, Germany, and Japan.
